| homeowner is delinquent on their mortgage payment | | | | of original auction, but you may find out sooner by |
| they will be given a grace period to find foreclosure | | | | calling the trustee or the attorney that is charge of the |
| help and bring their payments current to avoid | | | | foreclosure. Auctions are generally held in the same |
| foreclosure. Depending on the lender and on which | | | | county the property is located, and in most states |
| state the property is located, this grace period can be | | | | those auctions are held at the county court house. The |
| just a few weeks or several months. If the payments | | | | county clerk can give you the location of mortgage |
| are not brought current, the lender has to notify the | | | | auctions but not tax foreclosure auctions. |
| homeowner their intentions to sell the property at a | | | | Each state has different requirements for what |
| public auction also known as a foreclosure auction. | | | | you need to bring to the foreclosure auction. They |
| Although foreclosure auctions are a sad time for | | | | may want the full amount of the bid in cashier check |
| delinquent home owners, these auctions offer | | | | or maybe a percentage of the bid amount. If you |
| excellent opportunities for real estate investors and | | | | can’t meet the financial requirements of the |
| conventional home buyers. Foreclosures sold at | | | | auction, you won’t be allowed to bid. |
| auction are generally available at below market value, | | | | When it comes time for the auction, it can be |
| but there are some catches to purchasing during | | | | overwhelming and intimidating the first time. Every |
| foreclosure. Here is information that will be helpful to | | | | state has different laws and processes of |
| those inexperienced in buying foreclosures at auction. | | | | foreclosures and bids. You need to educate yourself if |
| You can find foreclosure listings through online | | | | that is where you decide to purchase your home or |
| services, documents listed at your county courthouse, | | | | next investment. You may want to sit and observe an |
| local newspapers and through many realtors who | | | | auction first, taking notes and asking questions. A |
| specialize in foreclosure listings. Once you have found | | | | trustee, attorney or real estate agent is a great source |
| a property you’re interested in, drive through the | | | | of information. |
| neighborhood and by the property to get a feel for the | | | | The day before the scheduled auction, call the |
| area. If this is for your home, make sure this an area | | | | trustee or attorney one more time to check the status |
| you want. If you are buying for investment, make sure | | | | of the property you want and confirm that the auction |
| this is an area that you’ll be able to sell in for a | | | | is still scheduled as posted. Arriving early and locating |
| profit. Note that it is also important to be discreet in | | | | the auctioneer is recommended, position yourself in a |
| your actions. There may be a chance meeting with the | | | | good visible spot close by. Observe the other |
| homeowner that could allow you to make an offer to | | | | participants as they arrive, picking up any cues that |
| buy the property before the foreclosure. | | | | may be helpful, but don’t let on what |
| Check the value of the property you are looking | | | | you’re bidding. There are aggressive real estate |
| at, is it a bargain? Find out the balance of the loan and | | | | investors who are seasoned with bidding and auctions. |
| search for any other outstanding loans or liens on the | | | | Set a limit on how high you’ll bid and stick to it. |
| property. That possible chance meeting with the | | | | Don’t let yourself get caught up in the activity |
| current owner can give you a lot of insight to the | | | | and overbid what you can afford or what you decided |
| property and any repairs that may be needed. Get an | | | | was the value of the property. If you aren’t |
| estimation of the market value of the property. You | | | | required to pay in full at the time should you win the bid, |
| want to make sure the outstanding loan balance | | | | make sure you are on time paying the balance or you |
| isn’t more than the resale value. Look for the | | | | will forfeit any deposit. |
| history of ownership; this should be available through | | | | If you win the bid, you need to seal the deal. Get all |
| court house records. If you can’t find the | | | | the necessary documents from the auctioneer to |
| information yourself, use a local real estate agent for | | | | prove your win. Get instructions from the auctioneer |
| guidance and help. The more owners a house has had | | | | and a real estate attorney what you need to do next |
| may indicate a problem with the house itself or the | | | | in order to take possession of the property. Ownership |
| area. | | | | may be transferred immediately in some states, others |
| If you will be living in the house, estimate your | | | | it may take as long a month for the process to be |
| monthly expense. Combine your monthly mortgage, | | | | completed. It is also possible in some states that the |
| taxes, insurance and consider not only basic | | | | owner of the property is given the opportunity to buy |
| maintenance, but what it may need when the current | | | | back his property from the winning bidder for the full |
| owner vacates the property. Add all the expenses up | | | | amount paid at auction plus fees. If there is such a |
| and subtract that from the market value of the | | | | period on the property you just bought, don’t |
| property. This will be the number you want to keep in | | | | start any repairs or improvements till that redemption |
| mind as you start bidding at the auction. | | | | period is closed. |
| After doing all your homework on the property, | | | | You may find that you are the one responsible for |
| you want to make sure of the status, where, when | | | | evicting the current owners. Should this be the case, |
| and any requirements of the foreclosure auction. | | | | you should contact the county sheriff office and find |
| There are factors that can change an auction up to | | | | out what legal process you need to follow. |
| the last minute. Even after an auction is scheduled, the | | | | In the foreclosure process, there are several moments |
| owner will have a short time to pay the balance of the | | | | to buy and each comes with its own risks. When you |
| loan and stop the foreclosure. Or the auction date may | | | | buy at foreclosure auction you are not allowed the |
| be moved to a new date. Postponed or cancelled | | | | liberty of inspecting the property thoroughly, only visual |
| auctions are usually announced at the time and location | | | | inspections are allowed. |