Buying foreclosures at the auction is a great way to purchase a property under market value. Most properties are auctioned at the property address, some at the courthouse. The location will be listed in the foreclosure auction listing. The property is auctioned off to the public and the highest bidder walks away with the property. This can be very rewarding to those who are in a position to buy the property within a short amount of time and can be devastating to those who bid without proper financing in place.
Most auctions require a small deposit down of the purchase price on the spot and the remaining balance usually within 1-30 days. So make sure you have you deposit ready and your financing is in order before you bid. If you are unable to get financing within the allotted time, you will most likely lose your down payment, and they will auction the property off again.
Buying foreclosures at the auction is also the riskiest place to pick up a foreclosure. You are buying the property in “As Is” condition so it’s very important to do your homework before you just go to an auction and bid on a property.
When buying foreclosures at the auction, we recommend you: – first visit a local auction to get a feel for the bidding procedure, find out how much is required as a down payment and when the rest is due – get proper financing in order (speak with a lender) – research properties and do your homework prior to the auction date (get a title search) – calculate potential profits – determine the most you will bid for the property – follow the property to the auction and participate Buying Foreclosures that are Real Estate Owned (REO)
How to add foreclosure auction listings to your real estate buying watchlist: When foreclosure auction listings are posted, you have about a two week window before the auction. This is where you can get in contact with the owner or foreclosing mortgage holder to purchase the property before the auction. Another way to use foreclosure auction listings to your advantage comes when no one purchases these properties at the auction. These properties will then go into the reo – bank owned property listings. At this step, you will be able to get into contact with the bank and work out a deal. The banks are not interested in selling real estate, they want to lend money. The Reo process is a great opportunity to purchase foreclosures at tremendous savings.
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