Auction foreclosures have their own way for charming prospective buyers. They are probably the lowest priced foreclosures in the market, they offer instant equity plus they are transferred quickly to the new buyer. But these homes are sold as is and some of your costs will definitely go to repairs and renovation. Also, there may be hidden taxes or encumbrances still attached to the title. So it is best to approach this matter with caution.
Auctions are Frequent and Easy to Find
Auction foreclosures are quite easy to spot. The weekend editions of newspapers dedicate entire sections for foreclosures, particularly auction foreclosures. They are likewise online in various foreclosure listing sites.
Purchasing auction foreclosures are way easier than other types of foreclosures because they are cash sales. Winning bidders instantly become home owners. Auction rules vary in different states but they are all pretty much similar to each other. If you hit a roadblock in terms of the auction rules, you can always consult a lawyer or a local real estate broker and remove the snags along the way.
The Benefits of Auctions
Homes sold in auction foreclosures represent savings for buyers. The beginning bids are very low and sometimes the turnout is not that great so there is a good chance that you can go home with the property, which you purchased at a very low price. The savings you realized could go to improving the home and increasing your equity.
A thing to keep in mind is not to be carried away by the bidding wars. You have to set a limit on just how high you are willing to go and stick to it. If you are doing it for the first time, it may be wise to attend some auctions without bidding to get a feel of the atmosphere and keep your emotions in check when you finally join one.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.