Trying to keep it in the Family

[johnnymac46]

I am currently looking into buying a second property, its 150 acres in Kentucky. Its typical rolling hills, huge fields, massive trees. This property has been in my family since at least the 1860's as far as I know. As long as I can remember we have been having family gatherings, reunions, christmas' here. My grandfather recently passed away, and to save family disputes and other problems with splitting the property between 7 children it was decided to auction it off.

Here's where I'm clueless...

I own a home in Virginia, which I bought in 2008 with a VA loan. I understand how buying a house works. What I dont understand is how to buy a house that is up for auction? If I was to buy this would I need to have the money in the bank(pay cash)? or do I just need to get approved for and have money for a down payment? I dont personally know anyone who has bought a house/farm at auction. I can't contend if someone with an unlimited budget shows up and wants it. So I'm hoping for a little bit of luck to be on my side when auction time comes.

This is going to put a huge damper on the Camaro but it means more to me and my family, and seems like the right thing to do. I dont want to see the farm get bought up, split, resold and trashed.

As usual thanks for any advice or help with sorting this out I'm workin the Google machine to try to figure it out on my own as well.

[CRCRFT78]

Beautiful property, I hope you can save it and keep it in the family.

[6D9 Matt]

I would think you would just need to get preapproved for a certain amount (loan) and then add on top of that whatever you have as a down payment. That would be your highest bid at the auction, bc obviously you dont want to bid for more than what you are approved for.

Beautiful property... what part of KY? I am originally from western KY, but live in TN now.

[johnnymac46]

Thanks for the help.

It's about 30-40 minutes east of Bowling Green

[Sieg]

Get to know the auction company and the auctioneer, technically you'll be playing by their rules. Tell them your story, I'm guessing they'd want to see you be the winning bidder and may offer any assistance they can.

Our family has a large farm and there will be a transition within the next ten years. Not knowing the players in your family, your Grandfather's decision may have been a very wise one. Money and self perceived entitlement can do evil things to people.

I very much respect your objective. Best of luck.

[tones2SS]

Originally Posted by CRCRFT78

Beautiful property, I hope you can save it and keep it in the family.

I agree. Good luck John.

[johnnymac46]

Thanks for the help everyone I'll get in contact with the auctioneers and see what kind of magic I can work and of course go talk to the bank...it will be a great place to retire in 15 years when I'm out of the service

[dmcgill]

Hey John,

Were you able to talk to the auctioneers? How's it looking?

[Beegs]

Yup.....you have to work with whatever terms the auctioneer has in place. You will probably have to have X amount to register to bid, then you will probably have to come up with more cash ten to fifteen days after the auction and then close within whatever time they require. They are all different.

I always have a title company make sure title is clear BEFORE auction day, it's cheap and you would be amazed at what can come up. Also you can make a quick call and make sure taxes, water/sewer bills are current etc...

[martin176]

I hope it works out for you, good luck with it.
Martin