What is a Foreclosure Auction?
Also known as the foreclosure sale, a foreclosure auction is when a real estate property is auctioned off in public at a Town/City Hall or Supreme/County Court. A judgment of foreclosure is set against an owner who defaults in paying his/her loan from a Bank. The proceedings ultimately lead to this public auction designated by the court.
Generally the foreclosure auction comes at the end of the foreclosure process when the homeowner can no longer repair their financial problems with the lender. As with any auction, the person with the highest bid gets the foreclosed property. Remember, if you are buying a home at a foreclosure property auction, you will be bidding against other investors and potential homebuyers. Do your homework in advance and know how much the property is worth, how much is still owed on the property and if there are any liens against the property.
Generally the foreclosure auction comes at the end of the foreclosure process when the homeowner can no longer repair their financial problems with the lender. As with any auction the person with the highest bid gets the foreclosed property. Remember if you are going to be buying a home at a foreclosure property auction you will be bidding against other investors and potential homebuyers. Do your homework in advance and know how much the property is worth, how much is still owed on the property and if there are any liens against the property.
A foreclosure auction takes place after the state law specific grace period during the pre-foreclosure period has expired. Once the pre-foreclosure period has expired, the property is then taken to a public foreclosure auction. Most auctions are conducted in a public place, often at the county courthouse at a specific date and time. Individuals interested in bidding on the property must attend the auction in order to participate, and the winning bidder is usually required to provide a percentage of the winning bid in cash in order to successfully purchase the property. Bidders at auctions are not usually given the opportunity to fully inspect a property before the auction. The winning bidder may also have to evict the former owners if they refuse to leave the property once the property is purchased.
The foreclosure auction comes at the end of the foreclosure process when the homeowner can no longer repair their financial problems with the lender. The person with the highest bid gets the foreclosed property. Remember if you are going to be buying a home at a foreclosure property auction you will be bidding against other investors and homebuyers. Do your homework in advance and know how much the property is worth, how much is still owed on the property and if there are any liens against the property.
