Auction
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The housing market skyrocketed several years ago but is now in a downward spiral and there is no end in sight. The repercussion of this trend has landed many homeowners to bankruptcy and foreclosure. The banks have repossessed the homes of many people who could not meet their obligations. The bank is always eager to get rid of such properties due to repair issues and the like. This is where foreclosure home auctions come into play.
These auctions allow you to purchase homes and pennies on the dollar and generally for the money that is owed on the home. This is a really great opportunity to begin investing in. you may have to provide more hard work than cash, however but so what? You’ve just picked up a house valued at $100,000 for $20,000. You can repair and update it and sell it for 25% above market value.
Where can you locate these foreclosure auctions? The Internet is the prime source for the information that you will need. It makes things very easy.
There are several kinds of home offered at these auctions and this can vary pricing among other drawbacks.
Homes that are under the direction of HUD or the Veteran’s Affairs Bureau will require you to make a written bid except for homes through exclusive listing contracts. HUD will only sell homes via sealed bids. There are specialized agents that deal solely with HUD and VA homes and they can aid you in submitting your bid for the auctions involving those home types.
Banks will foreclose on a home and put it on auction. These are open to the public and are typically advertised in the local papers. There will be specifics listed for the property as well as the deposit amount that will be paid to the bank to secure your bid. This will be placed on with your final bid amount.
At auction you can make more than one offer and a bidding war could begin. Banks love these as it shows interest and they may make money from it. When doing so, however, your first bid, if higher, will be accepted.
A public sales opening is when new home will be added to the auction block. The bidding for these homes will remain open for 10 days. The day after the auction closes will see the opening of the bids amounts and all offers reviewed with the highest bidder being notified.
After a phone notification you will be mailed all the documents needed in order to close the auction. You have up to two months in order to return the documents. You are usually responsible for all taxes, fees and closing costs when dealing with HUD and VA homes. Banks may differ by paying them for you out of the money that they are rewarded. You may also be responsible for any overdue utility bills such as water, sewage and the like. The phone and electric companies may also insist you pay the back amount before they return service to that location.
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