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Why Should You Consider Foreclosures Home Auctions?

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By : John Cutts    99 or more times read
There is a steady stream of buying and selling activities in the foreclosure market but some of the cheapest homes are bought at home auctions. First time buyers should consider this manner of purchasing foreclosures as well. But they should tread carefully and practice caution in every step.

Home auctions is a phase that foreclosure properties go through. When a home owner defaults on their mortgage payments, the mortgage provider issues a notice of foreclosure for their home. Once the grace period set to allow home owners to make good on their loan, the home becomes the property of the lender, usually banks. Since banks are not really in the business of selling homes, they would want to sell these foreclosures as quickly as possible and the first venue where they attempt to sell the property is a public auction.

Fundamentals of Home Auction Sales

All foreclosed properties are first offered to the public through an auction. A notice of auction is released by the county courthouse including all the details of the property to be sold, the venue and schedule of the auction. Prospective buyers should learn everything there is to know about the foreclosed property if they wish to place a bid for it. On the actual day of the auction, buyers are required to register and pay an amount that represents earnest money in order to participate in the bidding.

One feature of foreclosure auctions is that they are cash sales. The winning bidder should be able to pay for the full price of the home within a short period of time. But even with this requirement, many buyers still want to purchase homes at auctions because of the significantly low price of the property. Plus many buyers prefer a quick transaction and homes bought at auctions are immediately turned over to the buyers. If you are a property investor, purchasing at home auctions can quickly boost your portfolio of homes to sell.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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