Foreclosure Auction

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Tuesday, September 18th, 2007 Subscribe To Our Feed

Foreclosure Auction Success
Foreclosure auctions are a great opportunity to find property bargains as long as the usual auction safety steps are taken. Some buyers have been known to purchase properties on the courthouse steps which is a risky move as they are buying site-unseen and without the necessary appraisals and inspections. Don't fall into the foreclosure auction trap. There are ways for you to insure your foreclosure auctions are always successful. Here are five important steps involved in purchasing a property at foreclosure auction which, if followed, will maximize your chances of success.

Find the Right Property

There are loads of resources available to people interested in purchasing properties at foreclosure auctions.

You can find properties that are coming up for auction in three main ways:

1. Watch the yard signs

Yard signs are often posted on auction properties that tell the date and time they are going to be sold.

2. Make friends with a realtor

Realtors are often sent flyers on properties that are going to be sold at time of auction.

3. Search the internet

The internet is filled with lists of properties that are going to be auctioned.

Determine Auction Status

Another key element in establishing a successful foreclosure auction for you is determining the auction status. In most cases, borrowers that are being foreclosed on have a time period in which they can pay of the remaining amount on their loan. Because of this, auctions are often scheduled and rescheduled.

Determine Market Value

Before placing a bid on a property, it is essential to know 2 important things:

1. The starting bid, which is often the remaining amount of the loan

2. The market value of the property

There are several online sites that can help you in this process including the online tax records. These can show you what similar properties in the area sold for. Your realtor friend can help you here too.

Place a Bid

The next step in the foreclosure auction process is placing a bid. The system is going to vary depending on where the auction is and the protocol the auctioneer is following. Therefore, it is wise to arrive early and introduce yourself to the auctioneer to ask any questions you may have.

Take Ownership

When you’ve won the bid, it’s time for you to take ownership of the property. You need to ensure that you receive the necessary documents from the auctioneer that demonstrate that you are the winning bidder and the new owner. Next, contact a real estate attorney. He or she will help you ensure that you take the appropriate steps for establishing ownership and help you ensure clear title.

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