How to Buy Real Estate at US Treasury Government Auctions

Each year hundreds of real estate properties are auctioned by the US Treasury Department. The properties are seized by the government by the IRS, Immigration and other law enforcement agencies. The Treasury Department auctions off the real estate to the highest bidder and the proceeds got back into law enforcement agencies. Many of the properties can be purchased at deep discounts.

Difficulty: Easy

Instructions

1. Search the auctions. Head to the US Treasury Department website and search for upcoming auctions by date or location.

2. Find out if you're eligible to bid. The government auctions are open to individuals 18 and older. Employees of the agencies auctioning off the real estate are prohibited from bidding, as are their immediate family.

3. Register to bid. Download a registration form at the Department of Treasury website or get a form at the site of the auction. Be sure to have identification handy when registering.

4. Bid by proxy. In some situations it's allowable to have an authorized agent bid on the property for you. You will need to acquire a notarized power of attorney before the auction when you register.

5. Offer your bid by mail. Written bids are often accepted as long as they are from a registered bidder and include a deposit.

6. Bid online. Occasionally government real estate auctions offer online bidding. Check with your particular auction to see if online bidding is allowed.

7. Inspect the real estate before buying. Most government auctions set aside a day for potential buyers to inspect the property before the auction date.

Tips & Warnings

• Closing on the real estate is done within 30 days of the auction in most cases.
• Be aware that most government auctions do not offer any kind of financing and acceptable forms of payment are cashier checks or money orders.

Resources

• Before you Buy Real Estate
• Government Real Estate Auctions in Texas
• US Treasury Real Estate Auctions