Bargains In Foreclosure Auctions

February 20th, 2008 | Tags: Foreclosure

Foreclosures are growing but that does not mean bargains too are growing. Local residents are in a better position to know how much the unit is really worth. Banks often ask for minimum bids that are far above the real market value. There are other options open for the buyer however. One can buy a house that is in the stage of pre-foreclosure directly from the owner. A pre-foreclosure deal is advantageous in many ways. It avoids the unpleasant hassle of eviction. Both the owner and the banks at this stage are more agreeable to negotiation as neither party wants to proceed with expensive time consuming foreclosures. Another crucial point is that with the permission of the seller, one can thoroughly inspect the house. Another better option is to buy a house that could not be sold at an auction. It is bought directly from the lender (usually the bank) and has a clean title deed without any lien. It is apprehended that foreclosed houses will quadruple with the number crossing one million this year and again another million in 2009. Foreclosure laws are not the same in all the states – they vary even from one county to another. Thus it is essential to know the details of operating laws in the local area. The time taken for a foreclosure process to come to an end also differs from one place to another. In New York and other places where judicial foreclosures are in effect, it might take many months or even a year because the lender is actually suing the borrower. In other states one can proceed with the foreclosure without taking recourse to suing. Here the time taken is much less. The foreclosure listings are made public stating particulars of the owner and address. These can be viewed at any county court house to enable the potential buyer to contact the owner directly. There are many websites that disclose particulars for a fee. Majority of those buying houses in foreclosure auctions are professionals who are skilled in the matter. Amateurs may miss out points like tax dues and multiple mortgages standing on one property. At the auction the buyer has to come either with ready cash or cashier’s cheque. Usually the down payment has to be made there and then. The balance has to be cleared within 30 days. All things considered it is better to work in tandem with professional real estate agents.