Information on Foreclosure Auctions

Find out about a foreclosure prior to making a bid.

It can be tricky to buy a foreclosed house at an auction. If you are not properly prepared, you could wind up getting a bad deal by paying too much for the house.

Get Information

Find out as much as you can about the house before making an offer on it. You will want to know if there are any liens on the house or if there are still people living in it. You also want to know about how much money you will need to spend on repairs. You can research some of this online and by driving by the house to inspect it.

Bidding Procedure

The bidding procedure varies from state-to-state. Find out what the procedures are for the auction you will be attending by looking up your state's foreclosure laws.

Money

Some states require you to pay in full for the property by cash or cashier's check, while others only require a certain percentage at auction with the balance due soon after.

Know the Area

Besides finding out the condition of the house, know what type of area in which the property is located. Find out what other homes nearby have recently sold for.

Figure the Bidding Amount

Based on your research, you should have a good idea of what the property is worth so that you can make an appropriate bid.

Paperwork

If you win the bid, make sure you get the proper paperwork from the auctioneer. Verify with a real estate attorney if you can take immediate ownership or if you need to wait for this to be confirmed by a court.

References

• Realty Trac: How to Buy a Home at Auction