Stage Two: Public Auction
At the end of the pre-foreclosure period, homes that have not had
their loan reinstated or that have not been sold to third-parties are
put on public auction. There are good buys to be found through
auctions, but many properties will not sell this way and will actually
be bought back by the lender to become an REO. The reason for
this is that often there is not enough equity in the home. The
bank bids on the home to avoid losing too much money.
There may be additional liens that will have to be fulfilled.
Properties up for foreclosure auction must be researched, and there is
often little time to get the research done. The "lien and
title" link above is one way of getting the research done in a
timely fashion. IRS and utility liens will have to be paid by
the buyer. Also, if it is the second mortgage that was defaulted
on, the first will still be in effect and must be paid. Do not
expect to be told about liens at the auction. You have to do
your research.
Also be aware of right of redemption laws, where they exist.
These laws gives the original owner or his heirs a set period of time
to buy their property back at the original price plus interest--which
law sets, not you.
Confirm with the trustee beforehand that the auction has not been
canceled or delayed.
The rules for how and when you must pay will vary by state.
Check beforehand to know what is required.
Off-site, state-specific articles of interest:
California
Kansas
Maryland
There are more properties being auctioned than just
foreclosures. Try these auction houses for other
property.
Auctioneers by State:
Alabama,
Alaska,
Arizona,
Arkansas,
California,
Colorado,
Connecticut,
Delaware,
Florida,
Georgia,
Hawaii,
Idaho,
Illinois,
Indiana,
Iowa,
Kansas,
Kentucky,
Louisiana,
Maine,
Maryland,
Massachusetts,
Michigan,
Minnesota,
Mississippi,
Missouri,
Montana,
Nebraska,
Nevada,
New Hampshire,
New Jersey,
New Mexico,
New York,
North Carolina,
North Dakota,
Ohio,
Oklahoma,
Oregon,
Pennsylvania,
Rhode Island,
South Carolina,
South Dakota,
Tennessee,
Texas,
Utah,
Virginia,
Vermont,
Washington,
West Virginia,
Wisconsin,
Wyoming.
Fee-based Resource:
Government Auctions
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Southern Investor:
The Foreclosure Investment Resource
