- Research foreclosure laws in your state: If you are in a state where judicial foreclosures are the norm, you may have to prove your ability to pay to a judge before the sale can be closed. It is always a good idea to try and get pre-approved for a home loan prior to a foreclosure auction.
- Research foreclosures for sale: You should check multiple foreclosure listings in order to compare prices for similar foreclosed homes in your area. If you are buying foreclosed homes with the intent to resell it for a profit, research the market value of similar homes as well.
- Inspect potential homes: Visit the home, run a title search and, with permission, have the home professionally inspected. You want to take liens and needed repairs into consideration when determining your maximum bid. You may not have time to do all this prior to the sale date.
- Prepare yourself for the auction: Predetermine your maximum bid on the home prior to the sale. Find out if any fees are charged to the winning bidder along with the cost of the home. Remember to ask if a down payment or any other documentation is required to close a winning bid.
- Call the seller named in the listing: Foreclosure auctions can be postponed or cancelled. This usually happens with little prior warning, and foreclosure listings are not always updated accordingly. Call the seller prior to the auction to confirm that the sale will happen as scheduled.
- Check in with an auction employee when you arrive: Remember to bring any documentation required to close the sale. You will be provided with everything else needed to participate. An employee may be able to answer additional questions you may have.
You may also want to attend other auctions for real estate foreclosures as a spectator prior to making an offer on a home. This will give you an idea of what to expect when you attend a foreclosure homes sale as a buyer. If you are still not confident in your knowledge of home foreclosures, you may want to hire a real estate agent to assist you through the process.
Interested in learning more about buying foreclosed homes at auction? Follow our blog to find out more: http://www.foreclosuredeals.com/foreclosure-auctions/