Foreclosure News Update Your Foreclosure Strategy Foreclosure homes for sale Why foreclosures? Foreclosure property types Your foreclosure goals Your foreclosure strategy Negotiate foreclosure Hold or flip foreclosure home? Fixer upper foreclosures Best foreclosure locations Home neighborhood Foreclosure mistakes Foreclosure procedures Foreclosure legal information Foreclosure law Foreclosure glossary Foreclosure Homes Financing Your borrowing strategy Foreclosure loans Creative financing techniques Home mortgage loan Foreclosure Inspection, Repair, Improvement, and Decoration Tips Home inspection Home appraisal Foreclosure repair Home improvement Home remodeling Home decoration Home design Home furniture Home garden Foreclosure Opportunities Newsletters Foreclosure Home Repair Strategy Negotiation Tips for Buying Home Four Common Mistakes in Getting Home Mortgage Loans Foreclosure Fixer-Upper Homes Foreclosure Process: Best Time to Get in Pre-foreclosure Opportunities: How to Locate Them Estimating Foreclosure Fixer-Upper Repair Costs Avoid Serious Common Mistakes in Buying Foreclosures Home Buying/Selling, and Renting/Leasing Tips Home buying Lease-buy option Home buying and selling news Home for sale Home for rent Title search and title insurance Real estate investment Home property management Home insurance Home security Home moving | Foreclosure AuctionsUnderstanding phases of foreclosure auction Reasons for foreclosure auctionFailure to make home mortgage installment payments. Failure to pay real estate property taxes, assessments, personal bankruptcy, illegal activities by owners, etc.
Types of foreclosure auctionPublic auction Court auction
Here are some differences: In court auctions, you cannot: modify the contract terms; transfer the title; pay in installments; and ask for a discount for early payment. Some auctions are done by verbal bidding and some others are done by sealed written offers. Process of foreclosure auctionForeclosure process is faster (about 3 months) in "non-judicial" states and slower (about 18-24 months) in "judicial" states where state courts are involved before the property is sold at the auction. Judicial foreclosure states are: Connecticut, Florida, Indiana, Louisiana, Maine, New Jersey, New York, North Dakota, Ohio, Pennsylvania, and South Carolina. Auctioned foreclosure properties are "where-is" and "as-is." Foreclosures are generally auctioned off at the county level. Be patient! Auctions are frequently postponed. Foreclosure Auction Methods- Absolute auction
Minimum bid auction Reserve auction
Risks in foreclosure auctionsYou can buy real estate at low prices at foreclosure auction, however you must be careful about the following: You may not be allowed to inspect the property fully especially if it is already occupied. You need to check liens and unpaid taxes on the property. You may experience difficulty in obtaining a conventional mortgage loan as the lender may not assess the value if inspection is not allowed. Sub prime lenders with higher interest rate may be your choice. Eviction may be your responsibility in some cases. You may not get a "clear" title.
Payment terms under foreclosure auctionsIn general, you need to present 10 percent of the bid amount in cashier's check, money order, or certified funds. You are expected to close the deal within 30 days by paying the balance of 90 percent of the bid amount, taxes, expenses, and other closing costs. You cannot make your purchase contingent upon financing.
|