How do auctions work? Do we come with the money? Are we able to get approved for a loan?

Asked by divineprinzez, Chicago, IL Wed Dec 26, 2012

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Chris Gordon, Agent, Park Ridge, IL
Thu Dec 27, 2012

While an auction can be a good opportunity for a good deal I have always advised to proceed with caution. If you are the successful bidder, the property does not necessarily pass to you with good clean title. There may be several liens against the property. The responsibility for these may pass on to the new owner.

Because of the possibility of these pitfalls I have been advising my clients to use an auction specialist. My specialist not only attends auctions daily but knows how to thoroughly research each property to see if it is a good candidate to buy at auction.

A cashiers check for a percentage of the purchase price is needed on the day of the auction and then the balance is needed within a short period of time. thereafter It is not usually feasible to obtain a mortgage for the property you are buying at auction as the time is too short. However, there are some simple ways that are possible to get the financing together.

Also, there are always some extra fees when buying auctioned properties. But, if you have an experienced agent, with a knowledgeable team, buying at auction can still bring a great bargain.

Another option for a good deal is buying a bank owned property. These are properties that have been foreclosed on that the banks now own. They usually do a little miner clean up and put them back on the market at a price that is below the regular market price. Banks are not in the business of selling homes and they want to get these homes off of their books. For these sales you do have time to look and time to obtain mortgages. In fact, several of these offer special financing to help buyers to purchase these properties.

If you would like to discuss the auction process in more detail or find out more about buying a bank owned home please give me a call or email me. Of course, I would be happy to help with any of your real estate needs!

Chris Gordon
Century 21 Elm
The #1 Office In Park Ridge for over 30 Years!

847-692-5522 ext. 131
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