| When a mortgage loan borrower has failed in making | | | | scheduled to take place. However in some states this |
| three consecutive repayment installments, he is likely to | | | | may be as much as 6 - 8 months in advance. So |
| be in a position whereby his home is placed in | | | | check your state regulations to determine this. Home |
| foreclosure. It is a fact that once this has happened, | | | | auctions that are advertised so far in advance will |
| the lender is legally entitled to request that the | | | | allow the home buyer or investor ample opportunity to |
| borrower pays the principle balance on the loan in its | | | | research the property and the condition of the title |
| entirety. The county and city courthouse buildings post | | | | deed. |
| a Lis Pendens which shows exactly what properties | | | | Title deeds in pre-foreclosure that are scheduled to be |
| are in pre-foreclosure and what the due date for | | | | sold at home auctions often have many liens attached |
| these home auctions are. | | | | to them. If the liens, particularly tax liens are more than |
| Due to the financial crisis that the US is currently | | | | the value of the equity in the property, then it might be |
| experiencing, foreclosures of every description are | | | | wise not to bid on them. Tax liens have to be paid, if |
| spiraling out of control, and investors are able to take | | | | not, the IRS will attach the property, even if you are |
| advantage of this market. The supply is definitely | | | | the new owner. |
| outstripping the demand creating a buyers market and | | | | It is not easy to inspect a property up for sale at home |
| making home auctions the place to purchase real | | | | auctions, this is because the present home owner is |
| estate for both home buyers and investors. In fact | | | | more than likely still in residence. It is valuable to try and |
| more property purchases are made in the foreclosure | | | | at least inspect the exterior of the property. A deed |
| market than any other real estate market at present. | | | | search will also tell you if any part of the land has |
| Buying during pre-foreclosure and home auctions | | | | previously been sold off and give you a better idea of |
| carries the greatest risk for an investor, but also | | | | what you are bidding for. |
| provides the best rewards. As long as you know | | | | If you are a new investor or home buyer, it is advisable |
| everything there is to know about the process leading | | | | to try to attend a couple of auctions prior to the one |
| up to home auctions and the auction processes, you | | | | where you want to actually bid. This gives you an idea |
| stand a fine chance of landing a beautiful home at a | | | | of the processes at hand in preparation for your debut. |
| greatly discounted price, or making good profits. | | | | Many investors find home auctions to be fun and have |
| Home auctions are generally advertised in advance, | | | | made a very lucrative hobby out of attending them. |
| usually around 4 - 6 weeks before the auction is | | | | |