Buying a house at auction

[$guy]

Here are some caveats if you buy a house at auction:

1. Do a title search.

2. Are there any unpaid back taxes? You will likely be the one to pay them.

3. Check for liens.

4. Most states require payment in full at the time of the auction. Make sure you have the cash.

5. Did the homeowner file for bankruptcy hours before the auction?

6. If the old home owner refuses to move, you may face a lengthy eviction process.

7. Check out various types of auctions. There are auctions run by investors, banks and the government, sometimes months after the original foreclosure.

[Penny]

Great points! You also might want to add about the competition you will run into at these auctions as well. We have some one where we live that does this professionaly and he pretty much out bids everyone at these sales. You just don't have a chance with him!

[bartongrl1]

Yes, the competition can be very stiff at these auctions. I will try to find information on Buying at auctions, maybe I can find something with information on how to compete with these types of buyers.

[beangel40]

Sold to the highest bidder!" Buying a home through an auction can mean incredible deals. In most cases, the seller is either the government, which has taken possession of the property due to unpaid taxes, or the lender, when the former owner stopped paying the mortgage. Despite the sad circumstances, competition for homes can be keen.


read more here http://www.ehow.com/how_111001_buy-house-auction.html

[Yager37]

You made some very interesting point on this thread. I've heard plenty of horror stories about title issues and liens after an auction.