What is the atmosphere like at home auctions?

It depends on the auction.

Two of the biggest foreclosure auction companies are:
1) REDC, perhaps the most well known, REDC runs www.Auction.com 
2) Hudson and Marshall - Who runs auctions through www.HudsonandMarshall.com

Sometimes they do online auctions, but usually they are in person.  Many of the homes have reserve prices.  My business partner and I sell a large number of foreclosed homes, and have all of the major banks as clients:  Chase, Citi, Wells Fargo, Bank of America, and ten more.  We listed and sold over 200 foreclosures in 2010, so we have had much experience with these auction companies.  We will get a phone call from the bank telling us that they are going to be putting one or more of our listings on the auction block.  

However, it is a tricky process.  When you register for the auctions, I can't emphasize enough that you read their terms and conditions very carefully.  Many times they want you to have completed any inspections beforehand.  Also, many times the auction houses do not actually have the authority to accept an offer.  Many times, a home might sell for $500,000 at auction (but was listed on the market the week before for $750,000)  The auction company tells the high bidder that they won the auctions, subject to seller approval.  The buyer gets excited, thinking they have won the auction and are getting the home at a great price, only to be told a week later that when the  bank that actually owns the home reviewed the high bid, they rejected it.  I've even see banks counter offer on a high bid 100k+ above the high bid.  Crazy huh?  Its problematic because most people assume that with bank owned homes, that if they are the high bidder that they simply get the home.  I've seen this happen even on properties that have no reserve.

Good luck.  Do as much research as you can beforehand.  Make sure you register before the pre-auction registration deadline as well, and have all of your financials in order.


Best of luck

It depends on the kind of auction. Before the bubble burst I went to a few hud (and other on site) auctions. There were a bunch of people who wanted to buy the houses for very little and then fix them up for resale. Some actually complained that the house went for to much money because someone wanted to live there so they bid higher.

Do yourself a favor. Go to a few auctions with no cash in your pocket. Keep your hands in your pockets and do not bid. Just watch and learn. ok... that may not be possible. Depending on the auction you may have to put down a deposit to go in.

One auction I went to people bid the price up to a certain amount then the bidding stopped cold. The auctioneer did his (inaudibles) then went on to say a higher number. Everyone looked at each other knowing no one had bid. The auctioneer finally admitted that the number came from the bank having a minimum bid.

There are different types of auctions. One is absolute. The property will sell if only one person bids a very low amount. The other may or may not sell depending on the price offered and the sellers mood.

Bidding on the court house steps before a foreclosure is completed is a wonderful way to lose all of your money and get nothing in return except a piece of worthless paper. Make sure you are getting a real deed and not just a transfer of interest in the property.

If you do decide to ever really bid at an auction use an old farmers trick. Watch carefully as everyone else bids the price up. Once everyone else stops bidding decide if that is above or below your limit. If you would bid higher start in. That way no one has a clue what your bidding will be like as you just started at the end. It also gives you the advantage of not getting caught up in the action and overbidding early. ALWAYS have a top figure in mind and if the bidding goes $100 over that limit stop there and let it go.

I have never been to an auction. However, the best time to interview for a job is when you don't need one. The best time to shop for a car is when you don't need to buy one. Kind of a trend...

You might get the best answer by simply attending an auction, with zero intention on buying - but just observing and seeing how things work. The opportunity to experience an auction without any emotional investment would likely be well worth the time. Also, the experience might help to focus your questions about the auction process.