Six Basic Steps of the Foreclosure Auction Process

The foreclosure auction process can be easily broken down into six basic steps. If you’re interested in participating at property auctions, read on to learn the basics as to what you need to do to take advantage of foreclosure investments at auction

1.  Find auctions and file foreclosed properties

Of course the first step is to find auction properties that interest you, including all their most recent information. There are several online sources where you can research this that have features to keep you alerted with the latest changes and new listings. You will also need to track all of the properties that catch your eye, as you will most probably be pursuing several properties at once over a period of months.

2.  Confirm auction details

Scheduled auctions may unexpectedly be cancelled or postponed without notice so you need to confirm whether or not the auction is still good to go, along with the actual location where it will be held. You will also need to familiarize yourself with the foreclosure auction process in your state as the bidding varies. Get information on this by researching state foreclosure laws or by attending an auction to observe.

3.  Calculate your possible bargain

You need to find out how much of a bargain you can get from a specific foreclosure so you can determine if it’s a potentially good investment or not. There are many factors that come into play in this, such as the estimated market value of the property, the amount owed on it, the overall condition of the property itself and the liens against it. Reports and information on all of this can be found on the internet. Whenever possible get yourself to the location to see the property. Chances are you won’t be able to get into it, but you certainly should visit the property to at least inspect it from the outside. This will help you in deciding how to bid later on during the auction.

4.  Set your bid amount

With the potential bargain calculated, consider how much you can bid based on your own financial capability. This is very important for states that require bidders to bring their bid amount in cash or check during the auction itself. Also, you need to set your maximum bid to avoid the rush of competition and the resulting overbidding that would net you no actual gains.

5.  Participate in the auction

Check one last time if the auction will proceed one day before the scheduled date and be on the location early. Keep your notes ready and place your bids as you’ve calculated. Don’t let the other bidders set your pace or do your bidding for you.

6.  Assume ownership

When you win the bid on a property, present yourself to the auctioneer along with the proper identification. Then, find out exactly what other steps you need to take before you can take ownership of your prize.

Southwest Florida foreclosures process while relatively easy to comprehend the basics, can and will take a lot of effort and time to master successfully for avid investors, especially when it comes to successfully winning bids over other savvy and experienced investors. It is always a good idea to try to sit down and discuss the foreclosure auction process with an experienced investor in the area you are interested in bidding. They can give you pertinent information you may require which may differ from the norm.
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