| Auctions are one method lenders used to dispose of | | | | You will also be expected to arrange financing and |
| foreclosed properties for sale. Have you ever tried to | | | | complete the property purchase within a short time |
| sell a car - and believed that you had an agreement to | | | | period; the term depends on your locality. |
| sell your car only to have the deal fall apart at the later | | | | If you cannot arrange the financing, you may lose the |
| stage of the transaction? Bad things happen every | | | | deposit, but if you petition the auctioneer you may |
| day in real estate transactions, and it certainly can | | | | sometimes get the deposit returned. There is no |
| happen with a foreclosure auction, for example when | | | | guarantee that it will happen, though. That is why you |
| the winning bidder cannot arrange the financing in time. | | | | should bid only when you are certain you have |
| To get a good feel of what can prevent the winning | | | | adequate financing in place. |
| bidder from purchasing the house, first let's examine | | | | The sale then starts with the recital of the action by a |
| the bidding process more closely. Foreclosure auctions | | | | referee. He is the receiver, with the power to perform |
| are held in easily accessible locations. If a notice says | | | | the sale even with the absence of the homeowner. |
| that a sale will be held on the courthouse steps, that | | | | After the sale introduction is concluded, the transaction |
| literally means the sale will be held on the steps outside | | | | begins. |
| the courthouse. | | | | An opening bid is usually made by the lender. That bid |
| Last-minute delays are relatively frequent. The action | | | | is often known as the "upset price." It is the amount |
| could be postponed or resolved at the last second for | | | | due the bank, including the late payment charges, |
| several reasons, such as the homeowners filing for | | | | mortgage balance, and all expenses incurred in initiating |
| bankruptcy, reinstating the loan, or filing a complaint to | | | | and running the foreclosure. The upset price offers |
| the court that the lender failed to notify them properly. | | | | you an indication about what amount the bank needs |
| You should always call the Register of Deeds office | | | | to get from that property with the aim to avoid losing |
| or the lawyer in charge of the sale, the day before, to | | | | money. |
| inquire whether the transaction is still on. You probably | | | | Banks are not required to identify themselves, and |
| will not be alone in this. If you are interested in the | | | | sometimes they will not bid at all. If the bank does not |
| house, expect others to show interest as well. | | | | bid, there is usually a good reason for that and that will |
| Although sometimes nobody shows up! | | | | certainly raise a red flag. This may not be the best |
| Regulations and rules vary according to your locality, | | | | foreclosed property for you to bid on, either. Your goal |
| but in many cases you will need to have a $10,000 | | | | is to find foreclosed homes to bid on that will not |
| cashier's check for the down payment or a cashier's | | | | require a lot of time and expense for repairs before |
| check equal to 10% of the property purchase price. | | | | you can put it on the market. |