Foreclosure Auctions

[missmanors]

There are some things that you must consider when thinking about purchasing a foreclosure home that's being offered by auction.

There are a couple of advantages to buying real estate this way:

Since the property is to be sold to pay the outstanding mortgage balance that is owed to the lender, the price for the property can be low. Also competition is often reduced due to the fact that payment in cash is required for these auctions.

Now for the disadvantages:

As mentioned above, the purchase price is to be paid in cash on the same day as the auction - normally no mortgage is allowed.

These auctioned properties are as-is and no inspections are normally allowed.

Buyers may end up owing liens, back taxes and mortgages on this property.

The buyer is responsible for researching the state of title prior to the auction.

Disclosures as to the history and condition of the property are not provided by the bank, and the bank may buy the property at auction (this normally if the bank feels a good price will not be recovered).

There's always the chance that the property will be damaged by the previous owners.

The buyer must pay for their own representation as no commissions or lawyer's fees will be paid.

[badmomma]

I was looking at some of these for my state. There are quite a few properties to be had if you have the money.

The auctions provide all of the information on what you need to have with you when you come. The information for the auction I was looking at is as follows.

Bring a government issued id. Bring $2500 dollars for the first home you buy and $5000 for each after that. You need a checkbood for the 5% balance of earnest money and 15% for each after that.

The dates of the auctions,the places and the times are all provided on the websites. I am very interested in buying some properties to flip or use as rentals.

[homealone]

I think that it would be intresting to look into an auction. Though I know that it personally isnt the thing for me.

I just know that I would end up way over my head. I guess the home I purchase I will do it the old fashioned way and hire an agent,LOL.