Types and Stages of Foreclosure Homes

2. Auction Properties

What is an auction?

Buying a foreclosure home at an auction may turn out to be an incredible deal. An auction sale is a public sale in which foreclosure homes or bought and sold, where properties are auctioned off and sold to the highest bidder. This is a very quick paced process. Keep in mind, when bidding at an auction you are competing against investors and homebuyers.

How can I locate an auction?

Locating an auction is easy and simple. You can locate auctions the same way you would locate pre-foreclosure properties. You can search for pre-foreclosure properties by searching through a property database, or by looking through the local newspaper or simply by contacting the foreclosure attorney regarding foreclosure homes.

How much money is needed to buy foreclosure homes in auctions?

The seller and how much the foreclosure home is worth determine the price for a property found at auctions. There are times that offers can be as low as $500. Banks sometimes require a deposit of at least 10% of the offer in order to submit a bid. If your offer is the winning bid, you are required to pay the deposit at the end of the auction. Some states allow bidders up to 30 days to pay the rest of the money.

What are advantages are there when buying foreclosure homes at auctions?

There are many advantage of buying a foreclosure home at an auction. One of these advantages is the discount can be obtained. Investors can make a 35% to 45% savings off the market value and may also be able to attain a large return on investment. Often compared to hitting the jackpot, buying foreclosure homes at auctions is a great investing method!

What should I be aware of when buying foreclosure homes at auctions?

Something to be aware of before buying foreclosure homes at auctions is that auctions are frequently postponed. This may cause you to waste valuable time and effort. Most auctions require bidders to have cash or a cashier check, in order to bid a price. Also, take into consideration that auctions always start on time and often finish quickly. Make sure to arrive early or at least on time.

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