Category: foreclosure

How To Get A Bargain At A Public Foreclosure Auction

If you’re going to be attending a public foreclosure auction, with the hopes of buying a property, do your homework ahead. Such auctions can provide real bargains…The bank doesn’t want to be in the real estate business they’re in the money business. Owning homes ties up money they want available. So they’re selling. A public foreclosure auction is a way for the bank to recoup some of their losses hopefully giving them at least as much money as what the homeowner still owed on their loan.

Have you ever bought anything on an online auction site? If so, you know how public auctions work foreclosures are similar, but in real life. You need to dot your i’s and cross your t’s, and be prepared to win.

Know Before Going In Where You’re Going

Before you attend a public foreclosure auction, you need to know your purpose in going. Are you just going out of curiosity, to see what it is like, with no intention of buying anything? Then find out when and where, and attend. In fact, attending without intention of bidding is a great way to test the waters, to find out how the auction venue works and what is expected of bidders.

If you’re going and plan to buy something if you can, you need to check with your mortgage broker first. After careful consideration of your financial situation, and in consultation with a lender, the mortgage broker can give you a letter stating the amount you are prequalified to get a loan for. This helps the auction house know that you are a viable offer. Without a prequal letter, they are not always able to take your bid at all. You will also need to have a cashier’s check in the amount of your down payment. Check will the public foreclosure auction company ahead some require it on the spot at the auction, others need it delivered within a few days of close of auction.

Once you know your limit, get the listing of houses up for auction from the auction house. It should tell you basic information about each, including the address. You should go visit any homes you are interested in buying. While you aren’t likely to be able to see the inside, you can see the outside and part of the yard without any trouble at all. Please don’t disturb the current occupant they don’t need a reminder that soon their house won’t be their house anymore. Once you see the home in person, you can determine a reasonable amount you would be willing to bid up to during the public foreclosure auction.

Shoot While The Ducks Are Flying

Once you are at the foreclosure auction open to the public, be prepared to bid up to your predetermined maximum. Keep your head, though don’t get excited with auction-fever and big above what you are willing or able to follow through on.

You want to buy a house but aren’t terribly picky or in a rush, think about going to a bank foreclosure auction. Such auctions can be a great choice for those looking for investment properties, particularly.

Ahead Of Time

Check with the courthouse for the date and time of the upcoming bank foreclosure auction. They will know when and where the public foreclosure auction will be held, often on the steps of the courthouse, itself.

Before the bank foreclosure auction, you can get a listing of the properties that will be auctioned off. With the list in hand, drive around and take a look at each. Though you probably won’t be able to go inside though anything is possible! – you can see the outside and the location and condition of the home. You can also check the comparables for the neighborhood, so that you walk into the bank foreclosure auction fully informed.

Decide which properties you are interested in, and what your absolute highest offer will be. Once you’ve decided, based on your finances, the probable worth of the property in question, and the starting price, stick to your guns. Though there can be wonderful bargains at a bank foreclosure auction, there is also buyer’s remorse for those who get caught up in auction fever and bid more than they plan to.

Have your prequal letter with you. Your lender can evaluate what amount of loan you can handle, and will give you paperwork to show that you are able to qualify for a home up to X amount of dollars. Take it with you to the auction, along with a certified check for a down payment usually, both are required to seal the deal.

At The Auction Of Bank Foreclosed Properties

Once you arrive at the auction, expect a lot of people. While many people are losing their homes in these hard times, other people are snatching up the good deals and investing in real estate. Buy low, sell high is the adage that applies in these tough economic times. If you’re the unfortunate homeowner who bought when things were high, and are losing your home to the bank in a foreclosure auction, you may not like it that others are taking advantage of the situation. It can be painful to see your beloved home up on the auction block. If there is no way you will be able to bid on your own home, stay away and avoid the grief. Your morbid curiosity probably doesn’t warrant the pain of attending.