How to buy a foreclosed property bankowned??

Asked by Kit Miranda, West Covina, CA Tue Jan 8, 2013

Going to auction procedure in buying foreclosed, If I win the auction, what will be your next steps before closing. Downpayment?? Number of years payment?? The first figure ($) to start the auction??

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Simon Campbell’s answer
Simon Campbe…, Agent, Miami Beach, FL
Thu Jan 10, 2013
Here are a couple of answers to common questions about what happens at a foreclosure auction:

When do you have to pay?
In most cases, the bank will require a substantial deposit or even the full amount of the property at the time of winning the bid on the courthouse steps. This can make it prohibitive for many buyers who might need to get a loan in order to purchase a property.

In many states, the entire price of the home must be paid within 24 hours of winning the bid on the courthouse steps.

Where will the auction take place?
it really depends upon the type of auction as to where the bidding takes place. Some bidding is on the courthouse steps while other bidding is done at auction houses. HUD homes are only done online.

Read more: What is a Foreclosure Auction? at

Simon Campbell -
0 votes
carlos parra…, Other Pro, Monrovia, CA
Tue Jan 8, 2013
A bank Owned property is called REO.
A property in foreclosure is still owned by the home owner and is being foreclosed because they cannot pay their debt to the Bank.
Buying a property on foreclosure requires all cash, and a lot of research and knowledge of what you are getting into.
Buying an REO property you can do with any good agent. I suggest working with Shannon Chang at 626-319-8545, she really knows what she is doing.
0 votes
Ron Takeuchi, Agent, Glendora, CA
Tue Jan 8, 2013
Hi Kit,
I will be glad to answer your questions however I want to make sure I understand your question and situation. There are several forms of purchasing foreclosures and two forms of auctions. At anytime, please feel free to call me so I can better reply.

If you are considering using the auction websites (i.e. etc.) then each company has their procedures posted on the website. I'm most familiar with

If you are interested in purchasing foreclosures on the courthouse steps when lenders take possession on foreclosed homes, then that is another process.

Let me know if I can be of assistance with any of the above.

Ron Takeuchi
0 votes
Ron Thomas, Agent, Fresno, CA
Tue Jan 8, 2013
Don't believe everything that you see on Television;
Buying at AUCTION, (Courthouse steps) is not that easy, nor profitable.

You need CASH
You can't do Inspections
You don't know about Liens
You don't know the Condition

Other than that, there is no jeopardy.
0 votes
Shaukatali K…, Agent, Katy, TX
Tue Jan 8, 2013
Hello Kit,
When you buy foreclosed property in auction you have to pay the FULL amount in CASH.
I have done this in Florida but may differ in other states.

So there is no down payment or monthly payments.

Please contact the court house for the procedures.
0 votes
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