?Foreclosure Auctions: A Bargain Hunter's Dream
Buying a home at a foreclosure auction could be perfect for you if you are interested in purchasing a home for the lowest price possible. The courts will determine the price of foreclosure homes, which is most commonly below the market valued price of the home. If the lending agency that forecloses on the home requests that they do so, the court can use three different appraisals to determine the value of foreclosed property. These appraisals can be appealed by the lender, however.
For several weeks before the foreclosure auction is held, advertisements will be published. Remember that in the majority of states the house must sell for at least two thirds of the appraised value it was given. You should also keep in mind that there are not usually a lot of people trying to find inexpensive homes at foreclosure auctions.
Typically, those in attendance include the lender and maybe an interested buyer or two. In rare cases the sale of the home at foreclosure auctions will spark a great deal of community interest and there are rarely more than two or three bids per house.
Getting Ready to Purchase a Foreclosure Home
The person who wins the bid on a foreclosure home is expected to present 10% of the price that was bid when the auction is over with. That payment can be made by cash, money order, or a certified cashier's check.
Most auctions will not accept these payments by credit card or personal check. The house will be resold immediately if the winning bidder is unable to make the 10% payment in an accepted form at the end of the auction.
Winning bidders are responsible for obtaining mortgage loans for the balance of the foreclosure auctions' price within an established time limit, normally 30 days, and if unable to find appropriate funding, will lose not only their right to buy the house, but also the 10 percent deposit they put down on the house. Most people to buy a house through foreclosure auctions will have their financing in place before placing a bid.
When a home has to be sold a second time because of the first winner's inability to pay, the first winning bidder may have to pay any difference in price between their winning bid and the second one, besides losing out on their 10% payment. Remember that winning a bid of a foreclosure home is like entering into a contract and the auction sales are final.
For several weeks before the foreclosure auction is held, advertisements will be published. Remember that in the majority of states the house must sell for at least two thirds of the appraised value it was given. You should also keep in mind that there are not usually a lot of people trying to find inexpensive homes at foreclosure auctions.
Typically, those in attendance include the lender and maybe an interested buyer or two. In rare cases the sale of the home at foreclosure auctions will spark a great deal of community interest and there are rarely more than two or three bids per house.
Getting Ready to Purchase a Foreclosure Home
The person who wins the bid on a foreclosure home is expected to present 10% of the price that was bid when the auction is over with. That payment can be made by cash, money order, or a certified cashier's check.
Most auctions will not accept these payments by credit card or personal check. The house will be resold immediately if the winning bidder is unable to make the 10% payment in an accepted form at the end of the auction.
Winning bidders are responsible for obtaining mortgage loans for the balance of the foreclosure auctions' price within an established time limit, normally 30 days, and if unable to find appropriate funding, will lose not only their right to buy the house, but also the 10 percent deposit they put down on the house. Most people to buy a house through foreclosure auctions will have their financing in place before placing a bid.
When a home has to be sold a second time because of the first winner's inability to pay, the first winning bidder may have to pay any difference in price between their winning bid and the second one, besides losing out on their 10% payment. Remember that winning a bid of a foreclosure home is like entering into a contract and the auction sales are final.
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