Expert: Dick Dennis - 10/15/2010

Question
Hi. In less than 3 yrs, my house will be paid for. I'm wondering if I can 'auction' it off. What I'm hoping for is: if I ask for $5 and a letter of why someone wants the home. I'm wondering, if I do that.. can I set a reserve price on it, such as they do on Ebay?

Answer
You don't say in what state the property is located, Joyce, therefore, I recommend you ask that question of your state's attorney general's office or your local real estate attorney. I do know in most states that is considered a lottery and if you are not approved for such an auction, you are breaking the law.

If you were a non-profit organization, like a church or charity, you should have no problem. I guarantee you that you are not the first person to think of that idea. Before you attempt it in any case, go talk to your favorite real estate attorney.

Another idea for you would be to sell your property AND YOU AGREE TO CARRY THE MORTGAGE (you should check the buyer's credit and get a decent down payment) and you will get X amount of money each month for years to come. After a few years, you can sell that mortgage to an investor and you will get all cash for the unpaid balance.

Yes, the investor buys the mortgage at a discount. The sooner the mortgage is scheduled to be paid off, the more you can expect to get for that mortgage. Of course, the more the mortgage is aged (shows a good record of payments) that also will add to how much you can expect to receive. Let me know if I can assist. I do wish you well.

Dick Dennis
CA Broker Lic. #00349415
dixiedee13@aol.com