Foreclosure Auction Tips for Beginners

Are you interested in buying a foreclosed property?  If you are, you may be interested in attending upcoming foreclosure auctions.  Foreclosure auctions, for many, are a nice, quick, and easy way to purchase foreclosed properties.  With that being said, you may be looking for some tips to help you see success.

One of the first things that you will want to do, before attending a foreclosure auction with the intent to buy, is familiarize yourself with your state laws concerning foreclosure auctions, as they do vary.  This is important, especially when determining how much you can afford to bid at an auction.  For example, there are some auctions where you are required to pay a percentage of your final bid or even the full amount twenty-four hours later or right at the close of the foreclosure auction.

Next, you will want to find local foreclosure auctions.  When doing so, you will find that you typically have a number of different options.  Foreclosures are public knowledge; therefore, you can visit your local government offices to search public records or inquire about upcoming foreclosure auctions.  You can also examine local newspapers, as most foreclosure auctions are highlighted in them.  The internet is also another nice option.  A number of online foreclosure listing websites can be found with a standard internet search.  Most will provide you with information about the property in question, like location.  They should also provide you with an individual or company to contact.  This individual can let you know if and when a foreclosure auction is scheduled.

Since there is a good chance that you will need to be prepared to show proof of needed funds right away, be sure to get financing in order, unless you have the cash on hand.  As a reminder, be sure to examine your state’s laws concerning foreclosure auctions.  If you are required to pay the money upfront, you may have difficultly getting financing from the bank, unless special arrangements are made ahead of time.  This is due in part to the fact that you may not be the winning bidder.  With that said, foreclosure auctions are often scheduled only a month or two ahead, if even that, so be sure to at least keep your credit in good standing, should you need to apply for financing right away.

As for the auction itself, be sure to arrive early.  Most foreclosure auctions are filled with hopeful homebuyers looking to get a great deal, as well as professional investment property owners.  As a reminder, make sure that you have enough money on hand, which should be either in the form of cash or a cashiers check.  This is important if your state’s foreclosure auction laws require payment right away. 

Finally, be sure not to bid more than you can afford or more than what you think or know that the property is valued at.  This is important, as participating in a live auction can sometimes get exciting and provide bidders with a “rush.”  Of course, buy the foreclosed property in question if you want to do so, but just be sure to use your best judgment.