House foreclosure auctions take place across the country and cater mostly to foreclosure investors out for a good deal. But even first time buyers can strike gold in these auctions with a little basic education.
Foreclosure Auctions 101
As in buying any other high ticket item, homes sold at house foreclosure auctions need to be carefully studied. The entire process of the auction is quite simple but first time buyers would be better off reading up about it first.
If home auctions are your target then you must know that cash is usually the mode of payment for these properties. Your search will start with a list of scheduled foreclosure auctions in the place you prefer. The most comprehensive and accurate listings of auction homes can be found in the Internet at online foreclosure listings sites. They can also be spotted at the county records office, through newspapers, lending companies and real estate firms. Your bank may have a list and so may your real estate agent. You just have to be sure the information you have gathered is accurate and up to date. This is the type of information that can change really fast and so it may be prudent to make a small investment on an online resource.
When you have seen the home you like there are some other tasks you need to undertake, and these are the title search, the home inspection and the comparative value analysis. Details on how these tasks may be carried out are also in that online resource you will use. If you feel confident you have armed yourself with the best information and knowledge then you can begin showing up at house foreclosure auctions.
You must have a ceiling for how much you are willing to bid for the property. Do not get carried away by the emotionally charged atmosphere of an auction and overbid. Set a budget and stick to it no matter what. Make sure you have the date, time and venue of the auction right. Arrive early for the registration and come prepared with an amount equivalent to 10 percent of the opening bid as this may be required in order to participate in the auction. It may be a good idea to string three or four auctions to participate in so that you have a number of fall-back if the first auction is unsuccessful. It may also be a good idea to set a lead time of about a month before your first auction. This will give you time for your research and time to watch two or three auctions first to get a feel of what it is like.