How to Win an Auction Foreclosure
Purchasing a home at a foreclosure auction is a great way to buy a home below market value. Once a property is foreclosed on, the lender sells the home in an effort to recoup its losses. While bidding on foreclosures can be exciting, it is important to thoroughly research the property beforehand. You need to make sure the property is worth the investment. After determining which property is right for you, winning is easy.
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Instructions
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Search for notices of foreclosure. Depending on the foreclosure laws in your state, there are various requirements regarding advertising foreclosure sales. Check your local newspaper in the classified section for auction dates. The county courthouse will also provide information on foreclosures filed through the court. You can also contact a real estate agent to assist you in finding foreclosures.
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View the property. Foreclosures that are scheduled to be sold in an auction typically have a viewing period. If the home is listed with a real estate agent, contact the agent to schedule a time to see the property.
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Hire an inspector. It is important to know the quality of the home before bidding. A house can appear fine from the outside but contain costly damage inside. If there are extensive repairs, a contractor can provide you with an estimate.
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Confirm the auction details. Particular properties scheduled for auction can be delayed. Call the trustee to verify before attending. Most auctions are held in a public place located in the same county as the property.
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Research liens. Visit the tax assessor's office and court clerk to obtain lien information. You will need to supply the property address.
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Gather information on the average sale price in the neighborhood. To determine if the price of the house is a bargain, you will need to know what other similar houses are selling for in the same area.
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Arrive at the auction location. Auctions are held during a specified time period. You cannot view which home will be first on the auction block. To avoid missing your desired home, be there early.
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Place your bid. The opening bid is based on the total amount owed to the lender. If no one bids above that amount, the lender takes possession.
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