How do I bid on a foreclosed house?

Asked by Danielle, Chandler, AZ Sat Feb 28, 2009

I found the house that I want. The current owner owes $260,000 on the house. Other houses in the neighborhood are selling for $145-$150,000. The house goes into foreclosure soon and has an auction date on March 20th. I just don't know how to go about bidding on the house.. and is there anyway to find out before hand what the starting bid will be?

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Doug McVinua, Agent, Gilbert, AZ
Sun Mar 1, 2009

You might have an option of purchasing the home now before the auction date, would you like that?

I would need some more information from you and would be glad to look into it for you.
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Lucinda Tkach, , Phoenix, AZ
Sun Mar 1, 2009

It will probably sell around what the other homes are listed for!

You will need to just put an offer in once it comes on the market. If it goes to a public auction only then will you be able to bid and you will know then what the bid starts at.

Feel free to contact me if you would like any further assistance. I hope this helps!

Lucinda Tkach
Windermere Central
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Patty Fisch, Agent, Gilbert, AZ
Sat Feb 28, 2009

If you'd like to send me some details on the house, I can do some research for you.
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Paul Welden, Agent, Scottsdale, AZ
Sat Feb 28, 2009
Hi Danielle,

You can contact me for this information or visit this site and scroll near the bottom of the page and read the section "How to buyer these foreclosures."

Buyer's Agent Realtor
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Carlos Ramir…, Agent, Mesa, AZ
Sat Feb 28, 2009

If you are talking about the Trustee's Sale, I will advise you to be well informed about how they work. Two of the most important issues to consider is that they are "cash" purchases and you need to come up with the entirety of the purchase price within 24 hrs, or you will loose your deposit. The other issue is that it is truly an As-Is purchase. If find any issues after you purchased it you are out of luck. And for most buyers it is not feasible to pay for a professional inspection on every home they intend to bid - that is assuming that you can have access to the property, which many times you don't.

Also remember that the lienholders will not let them go too cheap. They do bid in their own properties, that is how they acquire them back to sell later as a foreclosed property.

Unless you have all the cash available and a high risk tolerance, a Trustee's Sale might not be a good option for you. Other type of auctions work differently and most times are no better.

The property itself should have a notice indicating when and where the trustee's sale will be. They are generally held in the court.

Good luck and please let me know if you will need further help.

ABR - Accredited Buyer Representative
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Ruby E. Reyn…, , Upland, CA
Sat Feb 28, 2009
You should preview the home before bidding on it. You may even consider getting a home inspection before purchasing the property.

Information of the time, date, and location of auction should be posted on the property.
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