Lenders with distressed properties would want to sell these homes off at public foreclosure auctions to recover their losses from the investment they made in providing the loan in the first place. Since the lender would only want to go after the remainder of the unpaid debt, the homes are auctioned off at a low opening bid.
This is the reason why buyers are particularly interested in public foreclosure auctions. The possibility of realizing great savings and of course instant equity is simply too hard to resist. First time buyers interested in joining auctions need a few pointers to set them off in the right path.
The first thing to remember is that auctions are cash sales so you need to be financially prepared for this endeavor. The homes are sold as is and there is little chance of conducting a formal home inspection to be conducted by a professional. Prospective bidders would have to make the effort of researching the properties they are interested in to determine if it is good enough for them.
Preparing for Auctions
Check out foreclosure auction listings from a variety of sources and pick the one that you like. It is recommended that you have more than one home to closely consider as there are no guarantees you will end up the winning bidder in any auction.
Conduct a title search or commission an expert to do it for you. The title of the property can be found at the county courthouse. This title search will reveal whatever liens or back taxes are still owed on the home. All these encumbrances will transfer to you if you win the bid.
Drive down the address of the home and survey the home as well as its surroundings. You may also speak with residents to gain insights on the home and the general vicinity.
Make sure you have all the information on the public foreclosure auctions you will participate in. More than the schedule and venue, you must know how the auction proceedings go. A good practice is to watch one or two auctions first to observe before you start bidding on your auction.
Joseph B. Smith has been educating buyers on the finer points of public foreclosure auctions at ForeclosureListingsNationWide.com for over ten years. Contact Joseph B. Smith through ForeclosureListingsNationWide.com if you need help finding information about public foreclosure auctions.