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Should You Buy Foreclosures at an Auction???  

Article by paul bagorio

Foreclosures are abundant in today’s market. Buying at auction may sound like an easy way to pick up a property for a small amount of money but if you are not seasoned at buying foreclosures at auction, there are some facts you should know.

How to find a foreclosure Auction

Foreclosures are made public and buying at auction are many times listed in the legal section of your local newspaper. You can also subscribe to upcoming real estate auctions in your area. When you find a particular property that you are interested in, contact the lender, lender’s attorney or the trustee for more detailed information on the auction day. Always call the day before to make sure the lender or the borrower has not postponed the auction.

Prepare for the event

Research the property and the surrounding neighborhood that you are considering buying at auction. Many times you will find that the borrower is upside down in the home’s actual value, indicating that the bidding will begin far above the property’s actual worth. There may also be hidden costs that only the lender is aware of. You don’t want this sprung on you on the day of the auction.

Always check out the property

Foreclosures are full of surprises. A three bedroom, two bath ranch up for auction at half its value may sound too good to be true and it probably is. There may be major repairs that need to be made just to make it livable. Take into consideration all repairs, building codes, amount of money to get back into shape and then decide if all of this work is still worth you time and money.

How much to bid

Buying at auction can mean different things to different people. Are you interested in purchasing, fixing up and flipping or are you going to be a primary resident? The amount of money that you are willing to invest has to bring you some type of gain in a resale, rental or personal home. These factors should determine how much you are willing to bid for foreclosures.

What you should bring to an auction

You will need to have some form of cash in order to even bid. Buying at auction is a final step that the lender is taking to unload a property. They do not want the hassle of dealing with someone who has no money. Contact the official that will be conducting the auction before the day to ask about terms. Some auctions require as little as 10% down and proof of financing while others require the full amount.

Important tips for buying at auction

Never be late for an auction when bidding on foreclosures. Check out the other bidders to determine if anyone else will be bidding besides the lender and stay with your original plan for a high bid. The property’s value has not changed just because there is someone else present that is outbidding you. You may be outbid and not get the foreclosure but that’s the risk you take. Buying foreclosures at auction are not for the light at heart and you must be prepared to lose for all your hard work to play the game.

About the Author

From The Desk Of Paul B. of Discount Properties of ArizonaThank You for taking the time to read my article of information. If you would like more information related to this article PLEASE CLICK ON THIS LINK http://www.discountpropertiesofarizona.com/

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