How to Buy Foreclosed Homes in Ohio

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Ohio foreclosures
Ohio foreclosures (Image: Carte Etats Unis Camaieu Rose image by Aimohy from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Ohio has seen a decrease in foreclosed properties between January and June 2010. RealtyTrac also reports Cuyahoga county has the highest amount of properties in foreclosure. Franklin and Hamilton counties fall into second and third place, respectively in number of foreclosure's. The average price of foreclosed property is $84,000, and the foreclosure process in Ohio takes an average of seven months to complete. Most foreclosures are sold at auction.

Buy Foreclosures at Auction

Research property that will be sold at auction. Ohio foreclosures are carried out through the judicial system. Notice of sale must be published in the local newspaper and posted in the local courthouse. Look in these places for upcoming property sales. 29 percent of foreclosed properties are sold at auction in Ohio.

Notice of sale are published in the local newspaper.
Notice of sale are published in the local newspaper. (Image: newspaper image by Photoeyes from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Identify property you are interested in. Notice of sale listings include the date, time and location of the sale. They also includes the property address. Drive by the property and observe the condition of the property. Houses sold at auction are sold as-is, which means the buyer purchases the property in the condition it is in at the time of sale and the buyer will not undertake any repairs. Research public records for the property. Determine if any liens exist on the property. If you bid on a house at auction and win, you will also incur additional expenses if liens or past taxes are due on the property.

Check out the property that is to be sold at auction.
Check out the property that is to be sold at auction. (Image: houses image by Patrik Lidaj from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Contact your lender. Explain that you want to purchase foreclosed property at auction. Make arrangements to have cash for the auction date. Contact the courthouse in the county where you want to buy property. Determine the amount you will bid for the property. Properties at auction are sold to the highest bidder. Ohio law requires that the sale price be at least two thirds of the appraised value.

Get cash to pay for property.
Get cash to pay for property. (Image: cash image by Alexey Klementiev from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Attend the auction. Many experienced investors buy properties at auctions. Bid on the property of interest. Pay the auctioneer if you are the highest bidder. The resource link titled Ohio Landlord Tenant Law will direct you to a page that lists the specific day of the week and time of auction for most counties in Ohio. Check the auction day for the county where you want to buy property.

Attend an auction and place bid.
Attend an auction and place bid. (Image: gavel image by Cora Reed from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Bank Owned Properties

Contact your local bank. Ask if they have any bank-owned properties. Ask if you can pick up a list of available properties. Many national banks have foreclosed properties listed on their website. Ask your bank if bank owned properties are listed on their website. Ask for the web address and the link to find their current properties 27 percent of foreclosed properties in Ohio are bank owned.

Contact your local bank.
Contact your local bank. (Image: bank image by Pefkos from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Contact your local real estate agent. Explain that you want to buy bank owned property. Ask you agent to do a search for property that meet your criteria. Visit your agent and pick up a list of available properties. If you do not have a real estate agent call the real estate company of choice and speak with the agent on call.

Review the properties. Identify the properties you want to see. Bank owned properties are sold as is. However, some banks have information on the property. Ask your real estate agent to discover if the bank has any information or inspection reports on the property. Set up a time to view property with your agent.

Look at properties.
Look at properties. (Image: Large New Ohio Home image by Shannon Workman from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Determine which property you are interested in. Meet with your agent and make an offer. Many banks accept multiple offers. Then they accept the highest and best o offer. Therefore your first offer to the bank should be your best. Even though lenders seek the highest and best price for a property Realty Trac reports that Ohio sales trends for 2010 show over a 63,000 dollar difference between the price of a re-sale home and foreclosure. Hence foreclosure property in Ohio is under market value.

Write an offer with your agent.
Write an offer with your agent. (Image: final contract winner image by Keith Frith from <a href='http://www.fotolia.com'>Fotolia.com</a>)

Tips & Warnings

  • Some banks will finance bank owned properties to qualified buyers.
  • HUD properties can be seen only with HUD certified agents. The HUD website provides links to contact logal approved agents.

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