Profile picture for user031006

What do I need to bid on a foreclosed property that is up for auction.

  • December 30 2011 - Hammond
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Answers (4)

Profile picture for NileMorin
In the foreclosure notice, or on the foreclosure website, it will specify the amount and type of funds acceptable to the bank at the foreclosure auction. Beware, I have purchased homes where the kitchens' heating systems, sinks, toilets, vanities, plumbing lines, and/or electrical fixtures have all been destroyed or removed. If you are getting a mortgage that is not a 203k, these homes are not typically lendable. And if you do not qualify for the 203k, or have the funds to close, you jeopardize your deposit, as the bank has the right to take it via the very specific purchase and sale you sign at the closing.
  • January 07 2012
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Profile picture for craigfial
Thanks for the question, but you definitely need to clarify who is holding the auction. Be careful, you may end up purchasing property sight unseen with no clear title.  I see a lot of new investors who think they know it all, get burned and loose everything.

There are
Bank Auction Sites
Government Auctions (Federal, Law Enforcement)
County Auctions

You may also end up on Internet sites where Bulk buyers who purchased 100's of properties from the banks put the properties up for auction.  It's a full time job for a year just figuring it all out.

  • December 30 2011
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Is it up for auction at the Sheriff's Sale or up for auction at a third party?  If you're at the Sheriff's Sale you need an attorney, title, and at least 10% of the winning bid and have done your homework on the property.  If it's with a third party, they also usually are 10% down, no contingencies (ie you can inspect and now you know what YOU need to fix), and knowledge of their terms.  Most of my client's when we go through the auction terms are scared off and don't go any further with the auction.  Good luck to you!
  • December 30 2011
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Usually enough cash to cover the purchase price and your costs plus an awareness that the seller will do no repairs, i.e. you will purchase "as is" and assume the risks. 
  • December 30 2011
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