Profile picture for ChristyJoy

how do you buy an auctioned home?

how do you buy an auctioned home? what is the process?where is the auction held?
how is the money processed?
  • March 11 2014 - Silverdale
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (7)

Best Answer

Profile picture for user6064703
You show up at the auction location with cashier's checks or cash for the amount you intend to spend.  You bid, then you pay.  You then own the house.

It's a simple process.  However, auctioned properties can obviously present much more challenging obstacles than traditional sales that go through the process of title searches, inspections, etc.
  • March 11 2014
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

One more thing.  I would look at estate sale properties, where the prior owner died and the heirs are trying to sell.  While bank owned and short sales can be bargains in poor or average markets, estate sales can be bargains in almost any market.  They can, however, require some work to get them back into shape.
  • September 20 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Christy,

The first position creditor issue is easy to explain.  The rest is hard.  Some houses have more than one mortgage against them, and that was quite common prior to 2008 where people would get a first loan for 80% of value and a second for 20%, thereby avoiding both mortgage insurance and a down payment.  If they second mortgage forecloses, the buyer of the property still has to deal with the first mortgage.  If they don't know that they can bid much more than what the house is worth.  As an example, assume a house is worth $300,000 with a $250,000 first and a $100,000 second which forecloses.  If the buyer bids $100,000 for the $300,000 house at a foreclosure conducted by the second, they would end up having to pay the $100,000 and pay off the $250,000 mortgage, or a total of $350,000 for a $300,000 house.
 
I really don't recommend any type of auction purchase to a first time homebuyer, particularly if you're just now "finally in a position where buying a home seems a reality."  The chances of something going wrong, either with the physical condition of the property or the condition of title, is just too great.  You wouldn't want the purchase to suck you down like it did the house's prior owner.

Also, I suspect that also means you don't have cash to buy, and that will mean some rather expensive short term financing and a larger down payment, which might also be problematic.

Finally, although I went to CKHS, I'm not at all familiar with the deed of trust foreclosure auction market in Kitsap County, but I suspect you won't find the bargains there that you expect because of competition from other bidders.  In King County fewer properties are being bought up by the banks because others come in and bid.
 
  • September 20 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for ChristyJoy
Thank you Kary L. Krismer,
   I am new to this, I did not realize I was being vague. I apologize.  I guess I may not fully understand the difference between foreclosure auction and any other real estate auction. I also have never heard of "first position creditor" or "first position lien", is there a guide?  I am finally in a position where buying a home seems a reality, but it is a rather large commitment and I'd like to be better informed.  I'll be looking up those terms and reading up on it. I appreciate any advice you have, or any direction you'd be willing to lend.

again thank you
Christy
  • September 20 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Most auctions are listed in the local paper and on some websites. As mentioned earlier, you prepare as much in advance as you can. If its listed on a site or the in paper early enough , you may have to opportunity to do a drive by.  Most auction homes do not always offer the ability to conduct a walk thru or any sort of inspection. Homes are sold AS IS. For cash (cashiers check) Many auctions are held on the local courthouse steps.

  • September 19 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Dunes ..
Depends ;)

Talking Tax sales/County Sales?
These are often different State to State..County to County ect. so you need to check how it's done in each Market/Local to be sure/informed..State/Counties often provide information/Property lists on their web sites so checking is important
Example..Kitsap County
Foreclosure Sales
View Kitsap County tax foreclosure sales information and available property listings.

Using a Free Public Records Search Directory is useful
Foreclosures and Tax Lien Sales resources in Washington

Nationally...Foreclosures and Tax Lien Sales

Other types of Auctions
Check out the Sites for info but know it's Big Time Buyer Beware..use due diligence
I'm not recommending these outfits or this road but if interested in their description of the process ect..
Just examples of some...
Bid4Assets

Auction.com

Williams & Williams

Whatever ya decide...Best of Luck
  • March 11 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Your question is not clear at all.  Are you talking about a foreclosure auction or just any auction of real estate?

I'm not going to get much into either, but I will warn you that on a foreclosure auction it might not be the first position creditor selling, and that would mean you'd be buying subject to that first position lien.
  • March 11 2014
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.