| If you're trying to get a home for less than market | | | | the needed repairs so that you can incorporate that |
| value, either to live in it, sell it or rent it, a foreclosure | | | | into your bid price. It also helps to be pre-qualified so |
| auction is worth looking into. A foreclosure auction can | | | | you don't have to worry about putting down a deposit |
| be exciting. You need to know what to expect when | | | | on the day of the auction. |
| you attend a foreclosure auction whether it's your | | | | To start the auction the auctioneer will usually read a |
| house up for auction or a house you're trying to get. | | | | legal description of the property and then start taking |
| Foreclosure bank owned properties are homes that | | | | bids. If there are people making bids who are not |
| the bank has taken possession of because the owner | | | | prequalified the auctioneer will ask to see the deposit |
| failed to make their mortgage payments. Banks are | | | | check. And as most auctions go, after each bid the |
| not in the real estate business, so they would like to | | | | auctioneer will try to get someone to raise the bid. If |
| get rid of the property soon as possible. That's why | | | | there are no higher bids forthcoming, the auction for |
| they may sell the property for less than market value. | | | | that property is over it is sold to the highest bidder. |
| The banks are at least trying to break even on the | | | | After the auction, a foreclosure deed and purchase |
| deal and unlike an investor or homeowner, they are | | | | papers are drawn up and validated. The new owner |
| not trying to get as much money as possible out of | | | | generally has 30 days after the auction to find |
| the property. You will find information about foreclosure | | | | financing. A person who is buying the property just to |
| auctions in the newspaper, internet or local flyers. | | | | resell it quickly may already have a new buyer lined up |
| Before you attend an auction you should do as much | | | | before that 30 days is over. The original owner is |
| research as you can on the property that you are | | | | allowed to bid on their home as long as they have the |
| interested in. You need to make sure there are no liens | | | | deposit needed and can get financing within the grace |
| against the property. Know how much the property is | | | | period. Sometimes the original owners can use the |
| valued for and what homes in the area have been | | | | auction process to have more time to save their |
| sold for in recent times. If possible perform an | | | | home. If they can accumulate the deposit and be the |
| inspection of the property with a person who is familiar | | | | highest bidder they will have another 30 days to come |
| with home repair. You'll need to have an estimate of | | | | up with new financing. |