Zillow Advice: Buying a Foreclosure - how do you buy an auctioned home? http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ Zillow Advice | Zillow Real Estate You show up at the auction ... http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ You show up at the auction location with cashier's checks or cash for the amount you intend to spend. &nbsp;You bid, then you pay. &nbsp;You then own the house.<br/><br/>It's a simple process. &nbsp;However, auctioned properties can obviously present much more challenging obstacles than traditional sales that go through the process of title searches, inspections, etc. Tue, 11 Mar 2014 18:40:00 GMT http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ 2014-03-11T18:40:00Z One more thing. &nbsp;I would ... http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ One more thing. &nbsp;I would look at estate sale properties, where the prior owner died and the heirs are trying to sell. &nbsp;While bank owned and short sales can be bargains in poor or average markets, estate sales can be bargains in almost any market. &nbsp;They can, however, require some work to get them back into shape. Sat, 20 Sep 2014 15:55:00 GMT http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ 2014-09-20T15:55:00Z Christy,The first position ... http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ Christy,<br/><br/>The first position creditor issue is easy to explain. &nbsp;The rest is hard. &nbsp;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. &nbsp;If they second mortgage forecloses, the buyer of the property still has to deal with the first mortgage. &nbsp;If they don't know that they can bid much more than what the house is worth. &nbsp;As an example, assume a house is worth $300,000 with a $250,000 first and a $100,000 second which forecloses. &nbsp;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.<br/>&nbsp;<br/>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." &nbsp;The chances of something going wrong, either with the physical condition of the property or the condition of title, is just too great. &nbsp;You wouldn't want the purchase to suck you down like it did the house's prior owner.<br/><br/>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.<br/><br/>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. &nbsp;In King County fewer properties are being bought up by the banks because others come in and bid.<br/>&nbsp; Sat, 20 Sep 2014 15:11:00 GMT http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ 2014-09-20T15:11:00Z Thank you Kary L. Krismer, ... http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ Thank you Kary L. Krismer, <br/>&nbsp;&nbsp; I am new to this, I did not realize I was being vague. I apologize.&nbsp; 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?&nbsp; 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.&nbsp; 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.<br/><br/>again thank you<br/>Christy Sat, 20 Sep 2014 13:58:00 GMT http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ 2014-09-20T13:58:00Z Most auctions are listed ... http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ <p>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&nbsp;site or the&nbsp;in paper early enough , you may have to opportunity to do a drive by.&nbsp; 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.</p> Fri, 19 Sep 2014 23:59:00 GMT http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ 2014-09-19T23:59:00Z Depends ;)Talking Tax sales/County ... http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ Depends ;)<br/><br/>Talking Tax sales/County Sales? <br/>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<br/>Example..<strong>Kitsap County</strong><br/><a title="Free Search of Kitsap County Foreclosure Sales" href="http://publicrecords.onlinesearches.com/cgi/golink.php?lid=94391" rel="nofollow">Foreclosure Sales</a> <br/><div class="desc">View Kitsap County tax foreclosure sales information and available property listings.<br/><br/>Using a Free Public Records Search Directory is useful<br/><a href="http://publicrecords.onlinesearches.com/Washington-Foreclosures-and-Tax-Lien-Sales.htm" rel="nofollow">Foreclosures and Tax Lien Sales resources in Washington</a><br/><br/>Nationally...<a href="http://publicrecords.onlinesearches.com/Foreclosures-and-Tax-Lien-Sales.htm" rel="nofollow">Foreclosures and Tax Lien Sales</a><br/><br/>Other types of Auctions<br/>Check out the Sites for info but know it's Big Time Buyer Beware..use due diligence<br/>I'm not recommending these outfits or this road but if interested in their description of the process ect..<br/>Just examples of some...<br/><a href="http://www.bid4assets.com/" rel="nofollow">Bid4Assets</a><br/><br/><a href="http://www.auction.com/" rel="nofollow">Auction.com</a><br/><br/><a href="http://www.williamsauction.com/" rel="nofollow">Williams &amp; Williams</a><br/><br/>Whatever ya decide...Best of Luck<br/></div> Tue, 11 Mar 2014 20:27:00 GMT http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ 2014-03-11T20:27:00Z Your question is not clear ... http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ Your question is not clear at all. &nbsp;Are you talking about a foreclosure auction or just any auction of real estate?<br/><br/>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. Tue, 11 Mar 2014 19:55:00 GMT http://www.zillow.com/advice-thread/how-do-you-buy-an-auctioned-home/531880/ 2014-03-11T19:55:00Z