A foreclosure is where the property is seized by the bank or loan provider when the property owner cannot pay the principal and/or interest on their loan.
Many home buyers haven’t been to a foreclosure auction, let alone know how the process is conducted. That’s where Soldavi’s got your back!
1. Find out Requirements
Depending on your state, the auctioneers require you to bring along a check to demonstrate you’re committed to actually purchasing the property. If you win, you’ll sign the check over to the auction company, and if you lose you can always deposit it back into your account.
Some Auctions may require you to bring a percentage of the winning bid within 30 days to further demonstrate the intent of buying the property, in other cases, they may ask for the entire balance to be paid.
If you have any questions regarding state requirements or information about auctions, feel free to call us! We’ll do the research for you!
2. Know what you can bid
It’s important to do research before you start bidding for a home. Our agents can compile a Market Analysis for you to determine the potential worth of the home in the neighborhood.
Depending on the house conditions, odds are the home might not qualify for a loan. Make sure to only bid the amount you have. You may not be able to walk inside the house, but base the conditions off how you see the outside. If the outside looks like it needs repairs, the inside probably does as well. Make sure to take repair costs into consideration before bidding anything.
3. Extra Advice
Make sure to arrive on time if you attend the courthouse for auctions. Some auctions may not last longer than 10 minutes.
Many of the first homes in the auction sell for cheaper than the ones near the end since people tend to wait them out. If there’s a house that you like near the beginning, don’t wait for other properties and drop a bid.
“This property is sold subject to all liens and encumbrances.”. Careful with the phrase as it means you will be responsible for past-due taxes imposed by the IRS. Our Agents can conduct research for you to determine if there are any past-dues you should be aware of before you bid.
There are also online auctions so you don’t have to bid at a courthouse. Auction.com is a great example if you’re interested. If you need any assistance with the start of this journey, don’t hesitate to call us at 209.975.SOLD or email info(at)soldavi(dotted)com.