Mar
2023

How to Be Successful at a Bank Foreclosure Auction

If you are considering buying a home and are not that very particular with your choices, you can save a huge chunk of money by making your selection from the properties offered at a bank foreclosure auction.

Tips for purchasing a bank foreclosed home

  1. Banks regularly hold foreclosure auctions to make money out of the dozens of bank foreclosed homes they have repossessed. Find out the schedule for these auctions by inquiring with your local courthouse.
  2. Secure a copy of the list of properties that are to be auctioned off — this can easily be obtained from the courthouse as well.
  3. Do your research before the day of the auction by visiting as many of the properties as you can. This will allow you to make a better assessment of the properties that you want to make a bid on. If you are lucky, you might even be able to get inside the house and take a look at its interiors.
  4. Once you have found the house that you would like to buy, decide on how much you are really willing to pay for it. Take into consideration all the fees and expenses involved. When the bidding starts, make sure that you stick to your price. If bidding surpasses your limit, avoid the temptation to overbid. Just let it go because there are many more bank foreclosed homes out there that you can choose from.
  5. Before going to the auction, meet with your lender and ask for a letter certifying that you are qualified to file for a home loan for so-and-so dollars. Many banks require that you submit this document, along with a check for your initial payment in order to finalize the sale.

The bank foreclosure auction proper

Properties sold at a bank foreclosure auction are usually inexpensive, compared to the market price. In addition, the houses are kept in good condition and prepared well for the auction.

For this reason, a lot of people await such bank foreclosure auctions, hoping that they can find themselves a good home for a lower price. Many of these people are looking for homes that they themselves would live in, while others are trying to find low-cost homes that they can rent out to other people in the community.