Foreclosure Auction Fever

During the historic foreclosure crisis in Texas during the· Establish a price range - from low to medium
late 1980s, thousands of properties were sold atto high - and keep track of these estimated values as
auctions as the Savings & Loan crisis generatedthe auction proceeds.
havoc. One auction was so big that it had to be held· If you don't want to overpay, then walk away
inside the Houston Astrodome. Swarms of peopleif the prices get too inflated - otherwise you could lose
showed up hoping to buy deeply discounted homes,money trying to chase a good deal that got away
but because the bidding was so intense most of thefrom you.
properties ending up selling for more than the going· By the same token, knowing your price
retail price. Buyers could have done better by payingtargets will also alert you to exceptional buys so that
full price for homes listed with Realtors, but they gotyou don't suddenly get cold feet because of a lack of
caught up in the foreclosure auction fever and paid ainformation and decide not to bid.
ridiculous premium.By not losing your cool during a heated bidding contest,
Today we have a similar situation, except that this timeyou can maintain professional judgement and not
the foreclosure crisis is not isolated to one particularmake the common mistake of letting your emotions
region of the country but is distributed nationwide. As aget the best of you. Remember that an auction is not
result of the high number of foreclosures, there is alsoa contest to find out who is the ultimate winner by
an upsurge in foreclosure buying. Some buyers arevirtue of outbidding everyone else. Instead it is a
professional investors, while others are homeownerscompetition to find out who can walk away with best
hoping to find decent affordable housing.deal. The winner of that kind of event is the one who
· Before you attend a foreclosure auction toshows up armed with the most information and then
bid on a home, do as much research as possible tosticks to a prearranged game plan for the desired
ascertain the value of the property.outcome.