Home Buying in 46322>Question Details

Dana Moes, Home Buyer in Highland, IN

Home auctions?

Asked by Dana Moes, Highland, IN Thu Mar 19, 2009

My fiancee and I are looking to become first time home buyers. We have seen many homes that are up for auction. How do you go about participating in these auctions?

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Voices Member’s answer
Dana, You start by learning what it is you are thinking of committing to financially so you can make the correct decisions. If you are asking about local tax sales then going to this site will assist you in getting information...http://www.lakecountysheriff.com/civil/sales.htm

If you are looking for information for tax sales in Indiana then try this...http://publicrecords.onlinesearches.com/Indiana-Foreclosures…

If you are talking about learning more about REO/Foreclosure then perhaps this will help. The Banks and Gov. maintain sites where you can get information on their properties for sale for Free. Sites like these...
http://www.tenmanagement.com/listings/state.do?code=IN
http://www.countrywide.com/purchase/f_reo.asp
http://reosearch.fanniemae.com/reosearch/
These sites will also have information on the purchase/bid process.
You can find the links to the Bank/Gov sites and more here...http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp ... http://www.biggerpockets.com/bank-reo.html

I don't know if you've checked this out but it has a lot of good buyer information and tools..
http://www.hud.gov/buying/index.cfm

Hope something here helps, Dunes
2 votes Thank Flag Link Thu Mar 19, 2009
Hi Dana,

Dunes has given you a lot of great info - well done Dunes!

Please bear in mind that Auction homes can be a great deal but you need to do your homework, especially with a title search, and usually need to be able to pay cash for the whole thing within a certain # of days.

A brief rule of thumb for the auction is: "Never buy at less than a 33% discount from current market SOLD values". This may sound like a huge discount - but it's often what you need to cover all sorts of unforeseen costs and STILL get a nice discount off market.

You will wish to understand how Lien priority works. This may help:

http://www.foreclosureuniversity.com/studycenter/freereports…
http://www.foreclosure.com/statelaw_IN.html

Note: there is PRE-Sale right of redemption in IN. This can be something to consider instead of bidding against others - and can help ensure the place isn't wrecked when you get it.

Consider going to the next auction and watching the proceedings. There will likely be a select # of people that are investors (or represent investors), are there every time, and really know the score. They won't be hard to spot, and often talk to each other after the auction.

But ... what I really DO recommend is for you two to find a discounted house in a good area from a distressed seller or estate sale. Then you can get a really good look at it, get it inspected, and get a good deal. I'm not saying that 1st time home buyers shouldn't do foreclosures - but you'll need to be patient and learn a fair bit so that you can make an informed decision and keep your risk factors tolerable.
1 vote Thank Flag Link Thu Mar 19, 2009
Check the bottom of this site.
http://www.foreclosurenest.com/
Has a list of foreclosure auction companies with there local listings.
0 votes Thank Flag Link Sun Sep 20, 2009
Dana,

The other answers are very helpful. They have informed you of a lot, but also you have to keep in mind you have to be ready with your funds the day of the auction. If you have to get a loan to purchase the home you also have to keep in mind that the home has to be habitable based on the type of financing you receive. You might want to contact a REALTOR to take you into some homes and help educate you a little about the buying process before you decide that an auction is the way to go. If you would like further assistance I specialize in First Time Home Buyers. Good Luck and happy hunting!
Web Reference: http://www.GinaBombin.com
0 votes Thank Flag Link Fri Mar 20, 2009
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