How to Buy a Foreclosed Property in Maryland

Courthouses hold some auctions.

Buying a foreclosed home in Maryland can help you save a lot of money compared with buying a house through a traditional sale. You can buy foreclosed homes through real estate agents or at auctions.

Auctions

Once a house forecloses in Maryland it will go into auction either at the site of the house or at a public auction event. Some houses will be sold on a cash-only basis where the bid amount must be paid for in full. Others will allow bidders to take out mortgages if they are pre-approved for a set amount prior to the bidding. Many auction events are listed online and in local newspapers under the legal section.

Warning on Auctions

Before bidding, ask if the house has any liens that will remain valid after the auction. A lien is money owed on the house that the new owner will be responsible for. A lien can be a second mortgage or unpaid property tax. To avoid houses with liens that the new owner will need to pay, call the auctioneer prior to bidding.

Real Estate Companies

Many real estate companies buy auctioned houses to resell them for a profit. These homes usually sell for less than traditional sales. This may be a good option if you don't want to do any bidding or don't have enough money to pay in full. You can find these houses by calling a real estate agent or looking online.

References

• Foreclosure.com: How to Buy Maryland Foreclosures
• NuWireInvestor.com: What To Consider Before Bidding On Foreclosed Homes At Auction