| Many foreclosure homes are purchased through an | | | | Once you understand auctions in your locality, it is time |
| auction. Usually, the foreclosure auction is organized by | | | | to start focusing on properties specifically. Usually, |
| the sheriff, which is why these auctions are sometimes | | | | when a foreclosure sale is about to happen, a notice |
| known as sheriff's sales. Investors love foreclosure | | | | about the impending sale is posted in the local |
| auctions, because properties often go to the highest | | | | newspaper or at the local courthouse. Check these |
| bidder. It is possible to buy a very attractive property | | | | sources regularly. In virtually every case, contact |
| for a fraction of its actual value - if you know how to | | | | information and addresses for the foreclosed homes |
| make foreclosure auctions work to your advantage. | | | | that are up for auction are posted publicly. This gives |
| The first step is research. You need to research two | | | | you a chance to find out whether a property interests |
| things: foreclosure auctions in general and the property | | | | you. Look for a foreclosure property in a good |
| you want to bid on specifically. Start by learning as | | | | neighborhood and look for a property that may not |
| much as you can about foreclosure laws in your state | | | | need too much work. Usually, you cannot view or take |
| and foreclosure auctions in your area. What are the | | | | a tour of a property being sold through auction, but you |
| specific foreclosure laws that might affect you as a | | | | can always drive by or even research the property in |
| buyer? Each state is different, so find out your rights. | | | | local records to find out its last market price and its tax |
| Next, find out about foreclosure auctions in your area. | | | | value. This can help you understand how much a |
| Where and when are they usually conducted? How | | | | property might be worth. |
| many foreclosed homes are sold at auction each | | | | Once you find a property you might like, set a budget. |
| month? How many people attend these auctions and | | | | Decide how much you are willing to pay for the |
| how close to full market value do properties at auction | | | | foreclosure. It is important to have a firm number in |
| usually sell for? Knowing all this will give you a sense | | | | mind before you get to the foreclosure auction, since |
| of your competition and will tell you how much you can | | | | at the sale the bidding price might go up very quickly. |
| expect to save at auction. | | | | Knowing your limit ensures that you pay the amount |
| It is a good idea to sit in on a few auctions without | | | | you are willing to pay, and no more. |
| bidding on any foreclosures. This will help you | | | | Before you attend an auction to bid, you will also want |
| understand who tends to bid at these auctions. Sitting | | | | to arrange financing. At most foreclosure sales, the |
| in at a few foreclosure sales will help you get a feel | | | | winning bidder is expected to pay for the property up |
| for how foreclosure auctions in your area tend to take | | | | front or within 48 hours, so it is good to seek not only |
| place. Taking part in a few auctions as a spectator will | | | | pre-approval for a loan but also to secure a loan |
| also help you get familiar with the process and will help | | | | amount you can access at once. |
| you feel confident when it is eventually your turn to bid. | | | | |