How does a bidding on a bank foreclosure work?
Question:
Answer:
You show up at a foreclosure sale with a certified check as required in the notice (usually $5,000 or $10,000), if you want to bid. You can attend any advertised foreclosure auction if you just want to see how it works. If you want to buy, you should try to check out the house beforehand, since most auctioned properties have been neglected, often for years. Needless to say, the owners will not be helpful nor willing to let you in.
A few minutes before the scheduled time for the auction, a lawyer and/or auctioneer will show up. The auctioneer will open the proceedings with a review of the rules and the procedure. The lawyer or other agent will bid for the mortgage holder. There may be other bidders, although often not. Many auctions are called off because the owners were able to reach an arrangement or file for bankruptcy.
Get a realtor. YOU don't have to pay them. The commission is paid by the seller(the bank), let them handle the details. Or if you are doing this off a website just follow the instructions. You should be pre-qualified at your lender previous to making a bid.
At a court house or designated auction of the trustees sale the bidding starts. As successful bidder you give a deposit and sign an agreement to pay balance within 30 days. You can see the Trustee sales propertys for bid in the classfied section of the papers.
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