Good morning everyone, I came across an interesting article that has some good ideas in it. And I was going to share it with you, but I wanted to add a little of my own info as well. Increasingly people are hearing about what great deals you can get at the foreclosure auction, but most people don't know how to make that happen, they'd love to get a good deal, but don't know how, so here are a few things that you may want to know before heading out to the auction to get that sweet deal.
PS- Most of this info is specific to the Utah Market
1-You will need a cashier's check for $5,000 This is where a lot of people get caught off guard. to be able to bid at any auction that I have been to in the last 5 years, you need a cashiers check for $5,000. If you don't have it, your bids will not be accepted.
2-You will have to pay cash Generally speaking you will have a very short period of time, and by very short period of time I mean 24 hours, to get the funds to the foreclosure "trustee" (trustee is just a fancy word for attorney who is handling the foreclosure). There are a lot of options here, the most popular of which is to use "Hard Money" as a sort of bridge loan until you can get it refinanced into a conventional loan.
3- You may not be able to see the inside of the property Depending on the situation, you may ot be able to see the inside of the home that you are interested in, this is just how it is, some homeowners will let you see it, some won't. If it's listed with a real estate agent there's a lot better chance you'll get to see it.
4- Be realistic in your expectations We've all seen the commercials saying you can buy a home for $15,000 and the truth is you can, but probably not in Utah, and if you are hoping to pay $100,000 for a $200,000 home well you may be a little disappointed. the fact of the matter is, on a foreclosure property if you can buy it for 80% of market value, you just got an awesome deal. Be realistic (besides 40K off of 200K is a sweet deal is it not?)
5- Stay detached Don't get attached to any one property, or chances are you will pay too much for it. Don't get excited at the bidding, when you reach your ceiling you are done, don't get emotional about the process.
6- Consider looking at Short Sales This is another way to get a property at a great deal, and it avoids a lot of the hard things about getting a home at auction. A short sale is just when the bank that is foreclosing accepts less than what is owed to get the property sold. Generally you can use conventional financing and will have plenty of time to look at and through the property. Honestly, you can get just as good of a deal on a short sale as you can on a foreclosure deal. Sometime short sales are also called pre-foreclosure deals.
Thanks and have a great day!
Keith
"Travel only with thy equals or betters; if there are none, travel alone" -The Dhammapada
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