Real estate auctions are a quick and efficient way to sell and buy property. They can also yield great deals for buyers who have a plan in place and don't get caught up in the exciting auction atmosphere. Use the checklist below to make sure you're prepared to bid and buy.
Make sure that you have the resources in place to purchase this property. This includes securing pre-qualification for a loan and enlisting the help of a buyer's agent if you're not comfortable contacting the owner and navigating the negotiations and closing process on your own.
Check the history of notices and call the trustee listed to check if this auction has been canceled or postponed. Auctions can be canceled or postponed for a variety of reasons, sometimes at the last minute.
Determine if this property represents a good bargain or investment opportunity. Start by subtracting the property's outstanding liens and loans from the property's estimated market value to determine the property's estimated equity.
Call the trustee periodically up until the date of the auction to check if the auction has been postponed or canceled. Bring the necessary funds required to the auction and don't exceed your predetermined maximum bid amount. Auction procedures vary from state to state.
If you submit the winning bid at the auction, the trustee should provide a certificate of sale or a trustee's deed. You'll have to pay the full amount of your bid on the spot or within a limited timeframe determined by state foreclosure law. Once you've satisfied all the necessary requirements, you can take possession of the property, which may require eviction of the former owner in some cases.
Buying a property at a public foreclosure auction is not for the faint at heart. It usually requires patience, persistence and a fair amount of cash, since most state foreclosure laws stipulate that the winning bidder pay all or part of the winning bid on ...