Does anyone have any tips on bidding strategically at public auction for homes in foreclosure?

Question:

We have found a home that was foreclosed on and I would like to purchase it. I have limited funds and realize that there may be many more people there who have more money than I and may easily rip this house right out of my hands. What I am wondering is if there is any way to "put on my poker face" and walk out of there with this house despite the fact that I could have easily been outbid? There has to be a fine art to this.

Answer:
Personally I pay my broker to do the bidding for me. The whole process tales less then a minute. If you are not on your toes you will be wearing "confused face".

Make sure that you have everything you need before you show up. You have to pay 10% cash (green or cashiers check) on the spot. The rest is due within 30 days. Unless you are paying full cash or already have a loan in your pocket it is tough to get them that fast.

Also, research the property. The bid price may only be part of it. There may be liens or additional mortgages that need to be paid for within those 30 days as well.

I personally am not buying this way right now. All of the banks are sending in Shrills, professional bidders paid to make sure the house goes for a minimum amount. In the "old days" this was not cost effective for them, but with several properties up for auction at once this is a way to protect their assets.

Outbid, until your personal price limit is met...poker face is good to keep on...if someone sees you stressing...painfully bidding at the end...and they want that house, they may consider pacing you until you stop bidding...Calm, cool and collective throughout! Don't forget, some people will trample right over you too, if they really want it...depends upon the crowd. Best of luck!

Great question! Don't get caught up in the excitement of the auction, lots of people bidding can make the house worth LESS then the bid amount. Do your research on the house as best you can and set limits for yourself. In this market I think you'll find a lot of nice houses. Good Luck!

Why not see if you can make a "back-room" deal with the lender either before or at the auction? they are not in the business of owning property...so if they can get a bad loan off their books, I'm sure they would be up for some "reasonable" negotiations...

Hope this helps...

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Does anyone have any tips on bidding strategically at public auction for homes in foreclosure?

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