If you think that buying a foreclosure is a good deal, there are a few important facts you should know before you decide to purchase one. Learn why houses are foreclosed, and what you can expect if you decide to pursue a foreclosure.
Buying Foreclosures – Tips for Foreclosure Profits
Buying foreclosures has its drawbacks, but also offer big profits for buyers and investors. Not every foreclosure will be a great deal. How to protect yourself when buying foreclosures. As a seller, how to avoid foreclosure, and alternatives for dealing with lenders.
There are three ways to buy a home in foreclosure. You can buy a home from seller before the foreclosure is final, at the county courthouse steps during the auction or you can buy the home after foreclosure, directly from the bank. Foreclosure procedures vary from state to state.
Question about buying foreclosed homes or homes at auction:
Best Answer
I have bought and sold many foreclosures. I started in the 1980′s when many fewer people were doing it. The process varies from state to state. In both FL and NC the auctions are held on the courthouse steps, in the county seat. In FL, lets say the home is sold for $100K. If you don’t research the title, you may be purchasing a second mtg. You would then be responsible for the first mtg and the second. It is very important to do your homework. Then, you will need 5% down in the form of cash or a chashiers check made payable to the clerk of the court. The balance will be due after 10 days also in the form of cash or cashiers check. Not very often, the owner will be able to hold off the foreclosure process in that 10 day period by filing for chapter 7, 9, 11, or 13. When that happens, the courts will refund you your money but it takes about 4-6 weeks. In NC, you also need 5% down on the day of the auction but now the 10 day period after the sale is open to anyone that wants to still put in an “upset bid”. This process continues until a 10 day period goes by without anyone bidding again. Then the balance is due in the form of cash or cashiers check. All other mtg’s are wiped clean in NC. The process is different from state to state. I would suggest you go to the courthouse and lookup the upcoming sales (they are posted somewhere just ask) and watch the process. Then, contact and pay an attorney for advice on how it works in the state you are in. I should say I have all but left the foeclosure business because of the volitility of the market. Be very careful, do your homework, and make sure you know what you are buying.
Related posts:
Buying At Foreclosure Auctions
The opening bid at a foreclosure auction is based on the total amount owed to the foreclosing lender, interest incurred, late charges, penalties, any liens placed on the property by other institutions, and may include fees incurred because of the foreclosure proceedings. If no one at the auction places a bid above the opening bid amount the foreclosing lender gains possession of the property.
Bidding procedures vary from State to State make sure you become familiar with the bidding procedures in your area before you start bidding at a foreclosure auction. Some States require foreclosure auction bidders to bring the full amount they want to bid in the form of cash or a cashier’s check to the auction. In other States, bidders are required to bring a percentage of the bid amount to the auction and pay the rest of the amount within 30 to 90 days.
6 Steps to Buying a Home at Auction
Step 1: Find and file properties
Step 2: Confirm auction status
Step 3: Check potential bargain
Step 4: Determine bid amount
Step 5: Bid at the auction
Step 6: Take ownership
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