If you are thinking about making a purchase at a foreclosure sale then there are many things that you need to know about the process. It is important to know these things so the process runs smoothly for all parties.
A foreclosure sale usually occurs on the front steps of the local county courthouse where the home presides. The banks will initiate the foreclosure and the courts will set a date of the sale. Homeowners have a few months notice before the sale of the property takes place. This gives them ample time to save their home from foreclosing if they want to keep it. If not then the home auction will take place on the set date.
A foreclosure sale usually has several properties that are being auctioned. If you want to purchase a property at an auction then you should have done your research first about the home. The auctioneer is not going to notify you about problems or repairs on the home. Placing a bid on a home you havenít seen yet is very risky and could result in a loss of investment. You can find out about local foreclosures in the local newspaper classified public notice section. This will give you the address and you can call and find out more information this way.
When you attend an auction it is common for a foreclosure sale to do a closed bidding system. The auctioneer will not shout out the prices but have sealed bids. The highest bidder will win the home. The highest bidder will be required to have a 10% down payment right then and there in the form of cash, cashierís check, or a banking account check. If you do not have the down payment then you cannot bid on the home. Some auctions require you to show the down payment prior to bidding. Some auctions require you to prove that you have been approved to buy a home or you do have the cash to buy a home before you are allowed to bid. It is usually best to get pre qualified before you go to an auction to buy a home.
After you have won a home at a foreclosure sale you will be required to fill out the paperwork and documentation. You will have 30 days to secure a loan to purchase the home. The closing process is the same as buying any home and it can take up to 30 days.
Julie Thompson, has been working on ForeclosureRepos.com studying the foreclosures market, helping buyers on the finer points of foreclosure homes. Try to visit ForeclosureRepos.com and begin your foreclosure homes by state search.