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how exactly does the process for buying a house on auction work? What are the steps.

please e_mail me at d_rjewert@yahoo.com
  • January 07 2014 - Milwaukee
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Answers (3)

There are many different types of RE auctions.  Some auctions are through website providers like Auction.com or Hubzu.com, etc.  For these types of auctions you bid online and if you will you follow the terms of the auctions site.  You have to read very carefully the terms of the auction. Occasionally one of these companies will bring a live auction to your city or town.

Then there are trustee sales or sheriff sales. These are when the foreclosure is being handled by the county or appointed trustee. They will sometimes take place at the trustee office or in many counties at the courthouse steps. These are live auctions, fast paced and require you to register as a bidder, place a token amount down to authorize you to bid and in most cases pay the balance off in cash in a short period of time.  These are not for beginners, you should attend several auctions to observe before you decide to throw your money in the ring.

In almost all cases auction homes are AS-IS, so you have to know what you are buying. There is no warranty, or backing out if you find the home has issues.

One final option. Locate a foreclosure bidding service in your area. Most cities have them. They will go to the courthouse steps and bid for you for a fee. It will cost you a few thousand more, but it will simplify things.
  • January 08 2014
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It depends on the auction.  HUD auctions homes, some sellers use auction houses to auction homes. There are homes auctioned on the court-house steps.  Each process is different and the answer to each would also be different.  My best advice would be to contact a local realtor who has experience with each type of auction.
  • January 08 2014
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You can read about it here. 
http://www.waukeshacounty.gov/defaultwc.aspx?id=38229

I stay away from auctions, they are too risky. Read the warnings on the site for Waukesha. And they use licensed auctioneers. Now consider the fact many online so called auction sites are not licensed. You have to ask yourself why they don't use state licensed auction houses to conduct business. As a licensed Real Estate Broker I had to go through enough of the auction laws to know how it works. What and how they have to disclose title defects is very important. But when a seller neglects to work with state licensed professionals, I would just as soon play it safe and stay away. I've had too many buyers try to find a magic egg through other routes than the tried and true process call me to share stories of getting stuck with unexpected expenses. When it comes to money your better off learning from other people's mistakes. 
  • January 07 2014
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