You should know that the Auctions advertise a price say $100,000 under the market as a starting bid.
If you are the only one who bids and you bid at that price, they refuse to sell it to you. In fact they refuse to sell for the most part unless you bid full price or more for it.
So really it is quite a racket. And that is why most agents do not want be involved. Though the Auction people work on us constantly to get us involved.
It seems the auctioneers have two prices. The starting bid and the Minimal acceptable bid. Which are not the same number. The minimal acceptable bid is very close to the market price.
When you buy at auction, you buy as is. You get a lot of protection by buying from the MLS that you do not get from buying at an auction.
Here are the main points:
1. Chances are they will not sell you the property and any kind of a discount to the value.
2. These homes are sold as is, they have no liability if you find out later that there is something major wrong with these homes.
3. Lots of people assume they are going to get a bargain going to these things and so my experience has been that they actually bid them up higher than market prices.
Furthermore, to finance one of these, in your case you need more cash, not less to buy foreclosures.
What you need is a good lender to help you get into a good house at terms you can afford.... more