How to Bid in Foreclosure Auctions
Purchasing a home to live in yourself or as an investment can be exciting. Foreclosure auctions offer homes for prices far below their market value. If you attempt to buy a home at a foreclosure auction, it is important to understand how to bid properly and that you have sufficient funds to make a deposit when you win an auction.
Other People Are Reading
Instructions
-
-
1
Perform a title search for the property. The property may have unpaid taxes that you will owe once you acquire ownership.
-
2
Register with the auctioneer. You will be given a number.
-
-
3
Bid aggressively on any property you wish to purchase. This may ward off other bidders and allow you to acquire the property at a lower price.
-
4
Use cash or a cashier's check to make a deposit on your new purchase. If you win an auction, you will have to make a deposit of about 10 percent of the total price. Give this payment to the auctioneer and fill out any additional forms. The remaining balance must be paid off in a short period of time, usually a few days.
-
1
Tips & Warnings
Set a general price for yourself prior to auction. It is easy to get carried away with bidding and surpass a price you are comfortable with.
Consult an attorney or check your state requirements before bidding.
Research the auctioneer and any requirements he may have prior to the auction.
Inspect and research the property before bidding. Deposits are generally not refundable.
