The grape vine is that one can own an affordable house once again during these troubled times. But it is better to know ahead how to navigate through foreclosure auction events before actually participating. There are two types of auctions – the Sheriff’s auction is conducted on the steps of the court and the bank-repossessed units are auctioned by the banks through professional auction houses.
The first thing is focus. The bidders have to be attentive and move fast when the house of their choice is up for auction. It is not easy to keep one’s eyes on the marked prize.
Usually there are hundreds of houses on the block and the time allotted for their sale limited to only few hours. Each deal even at lightning speed hardly lasts a minute. The atmosphere is akin to the chaos of a circus. Ringmen in tuxedos run around the aisles making wild gestures and blowing loudly on whistles to make sure that the auctioneer does not miss out on a bid. Those attending number hundreds. Many kids come with the elders. Most of them clutch brochures. Each minute the successful are taken to the area dealing with paperwork. This is the same scene of foreclosure auctions being enacted across the country.
The auctioneer is a fast talker – too fast to be understandable. This might lead to the bidder giving the signal to the wrong bid. The prudent bidders would set limits to their offers before coming so as not to get trapped in the frenzy of competitive bidding. This can be done by carefully studying the contracts that are generally posted on the web site. The fine print should be read carefully. Property taxes need to be studied and to know ahead what one plans to do with the property – rent, invest or occupy as a home.
The potential buyer is advised to come to the auction with all the relevant papers – pay stubs as well as tax returns. Some of the deals are cash only and as such coming with some extra cash might prove beneficial.
Credit score is a very important factor. It derails many from clinching the deal at the last minute. Some deals go back into the second round of bidding so that losing bidders often get another chance to win.
The biggest tip is to be prepared for disappointment and take it as just another game wherein some win and others lose.