Wholesaling Foreclosure Auction Properties in Mississippi

The short answer

Can you wholesale a foreclosure auction property in Mississippi?

Generally yes, but the path differs from a normal contract assignment. You cannot assign a contract with the owner, so most investors bid with funds and resell after, or work with a funded partner. No wholesaler-specific statute was found. Check current text and ask an attorney before you take any fee for connecting buyers. Never bid without cash lined up and a clear title plan.

Auctions under a deed of trust are generally held at the county courthouse. The statute commonly cited is M.C.A. 89-1-55, which calls for notice for three consecutive weeks and a courthouse posting. Confirm current text and read the notice for terms, since the trustee’s instructions control. See how foreclosure auctions work.

Because the winning bidder pays the trustee, the model looks like buying, not assigning. Many beginners partner with a funded investor. Read joint venture wholesaling and double closing and funding for the main structures. Check each bid against the MAO calculator.

The opportunity

Why wholesaling foreclosure auction properties in Mississippi suits DeSoto County

Southaven is part of the Memphis metro area, so buyers from across the metro watch DeSoto County deals. Public estimates put Southaven prices near the high $200,000s, and median household income is reported near $78,000. Nearby Horn Lake and Olive Branch share many of the same buyers. Records and recording happen through the DeSoto County chancery clerk in Hernando. Competition at sales can be thinner than in a big city, which sometimes leaves a bargain for prepared bidders. Title companies and lenders in the metro can also affect timing, so plan closings early.

Lead sources

Where to find foreclosure auction leads in DeSoto County

• Legal notices. Newspapers publish notice for three consecutive weeks before a sale.
• Courthouse postings. Notices are also posted at the courthouse of the county where the land lies.
• Lender and trustee sites. Some trustees post their sale lists online. Verify each one.
• Paid lists. See pre-foreclosure and tax leads for list sources.
• Drive-bys. Visit before the sale. Learn about zombie properties and vacant homes.

Your exit

Who buys after a Southaven auction

Rehabbers sell finished houses to owner-occupants in the Memphis suburbs. Landlords add rentals along the Stateline Road corridor. Match the repair level to the buyer, since owner-occupants are picky and investors are not.

After the sale you will need a trustee deed, an inspection of occupancy and a clean title review. Use an investor-friendly title company and a title insurance plan before you resell.

Step by step

How to start wholesaling foreclosure auction properties in Mississippi

1. Pick the sale. Read the notice for date, time, terms and the trustee name.
2. Inspect the outside. You cannot enter, so study the exterior and the neighborhood.
3. Check liens. Use a title search to find liens that survive.
4. Run the numbers. Use the ARV calculator with a repair buffer.
5. Line up funds. Have cash or a funded partner, in the form the trustee requires.
6. Set your resale plan. Choose a rehab, a rental sale or a quick flip.
7. Bid, close and sell. Pay the trustee, record the deed and move to resale.

This worked example is an illustration. A DeSoto County house was set for a courthouse sale at noon. You teamed up with a funded partner under a written agreement that gave you a share of the profit.

The partner bid $148,000, paying the trustee in certified funds. The house was vacant and needed paint and flooring. A closing company confirmed the deed and the lien search.

An investor bought the house for $198,000 after two weeks of cleanup. After costs, your share of the profit came to $14,000.

Mississippi rules to know

Auction, license and partner rules

Mississippi’s broker definition in M.C.A. 73-35-3 covers anyone who, for compensation, helps procure a buyer for real estate, including options and any interest in land. Penalties under M.C.A. 73-35-31 can include fines, jail time and a repayment of up to four times any fee. No wholesaler-specific statute was found. Check current text.

Buying at auction in your own name, with your own funds or a documented partner, is different from collecting a fee to bring others to a sale. An attorney can help you set up the structure. The seller disclosure statute at M.C.A. 89-1-501 and following lists foreclosure sales among its exclusions. Read license rules for wholesaling and working with an attorney.

Learn it with a mentor

Plan an auction before the sale day

Auctions leave no room for guessing. In mentorship we review your numbers, your partner terms and your exit before you bid.

FAQ

Foreclosure Auction Properties in Mississippi: common questions

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