| Are you looking to buy a new home? If you are, you | | | | you are scouting to see how an auction works. When |
| may be turned off by the real estate prices you see | | | | you are serious about purchasing a foreclosed |
| on the market. If so, this doesn't mean that now isn't | | | | property at an auction, you need to be prepared. |
| the time to buy a home, but it does mean that you | | | | This preparation involves having financing lined up. |
| may be looking in the wrong place. | | | | Many will require that you either have the money on |
| Instead of visiting the online websites of realtors or | | | | hand or show proof that you do have the financial |
| flipping through their brochures, place your focus on | | | | resources needed to follow through with the sale. |
| foreclosure properties. Foreclosure properties are | | | | Contingency loans are generally prohibited. Check |
| often considered a great buy, as they are easy to find | | | | deposits are sometimes required before you can even |
| and affordable. | | | | place a bid. |
| One of the most popular ways that foreclosures are | | | | As for the auction itself, it depends. It is not uncommon |
| bought and sold is at an auction. This auction typically | | | | for bids to be sealed. Once everyone has placed a bid, |
| takes place at a county, town, or village government | | | | the highest bidder will be announced. For bids that are |
| office, such as the clerk's department. As for how you | | | | not sealed, the auctioneer will start with a figure, often |
| can find these foreclosure auctions, they are often | | | | around $1,000 or less and the bidding will continue on. If |
| advertised in local newspapers. You can also search | | | | you are the winner bidder, it is important to know that |
| local records, as foreclosures are public notice. | | | | you may not be able to move into your new home |
| One of the few downsides to buying a home at a | | | | right away. In fact, it is likely that you will be unable to |
| foreclosure auction is the inspection, as you aren't | | | | do so. Many states give current occupants a |
| typically granted one. Most bidders are bidding on the | | | | redemption period or a grace period. This is where |
| home as-is. As-is isn't so bad, but it may be if you | | | | they can still fight to keep their home. After this point |
| haven't seen the property. | | | | has passed, you can start the eviction process if the |
| With that said, since foreclosures are public notice, you | | | | current occupants do not leave voluntarily. |
| should be able to get the address of the property in | | | | As it was previously stated, you may want to attend a |
| question. You will want to drive by. Although you | | | | foreclosure auction and just sit on the sidelines. You |
| should not judge a book by its cover, a drive by can | | | | should be allowed to do so. If you are unfamiliar with |
| give you an idea of what to expect. When you have | | | | the buying and selling of real estate, foreclosures, or |
| doubts, it may be best to move on and target other | | | | auctions, you can learn a lot. This knowledge is |
| auctions. | | | | important, as many fellow bidders will be investors |
| If you decide to attend a foreclosure auction, the last | | | | looking to turn a profit, not buy their first home. |
| thing you want to do is just show up. That is unless | | | | |