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Foreclosure Auctions: Understanding The Process



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By : John Cutts    99 or more times read
Those who are just starting out in foreclosure investing are understandably unfamiliar with the process that goes on in foreclosure auctions. Of course, to avoid falling in traps and committing mistakes, you should exert effort to acquire knowledge about the whole buying process involved in a public sale.

Pre-Auction

One of the most important information that you should find out before joining an auction is the auction rules and procedures that govern the bidding process as well as the laws relating to foreclosures in the particular state that you intend to attend in. Preparing your finances is also important since you need to make sure that you have adequate financial capability to cover your bid in the auction.

Of course, it is always wise to do some research and investigation on the properties that are up for bid in foreclosure auctions. This way, you will know how much money you are going to need to buy the foreclosed property and the repairs that it might need. If you know the current state of the local housing market where the property is situated, you will know whether it is timely to buy a property in the said area.

Bidding Proper

Bidding in public auctions can be both exciting and scary especially for new buyers. The golden rule that you should maintain when joining these foreclosure auctions is to never bid for a property that you know and are well aware of that you cannot afford. Even if you think that the repo home being offered for sale is the best for you but you do not have the finances to make the purchase, do not bid. Do not worry that you will run out of good property to buy. There are other properties that you can find even in other public auctions.

Post-Bidding

If you have won the bid, you need to wait for the purchase papers and deed of sale to be delivered to you. You will also be given a chance to find a financing house that can give you a mortgage loan. If you can, get a preapproval so that you will not be hampered in your investing experience. Keep in mind that auctions are only intimidating in the beginning. If you do your homework and exert effort to understand the process, laws and procedures of these public sales, then you can master the entire auction process in no time at all.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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