One of the most popular methods of buying foreclosure properties is an auction that involves live bidding that is either conducted in a public place such as the courthouse. In some cases, the Sheriff or a referee appointed by the court will carry out the proceedings at a particular time and date specified in the legal section of the newspaper in your area.
Even though a lot of foreclosed properties are sold at 30% – 40% of the market value, there are often two scenarios in an auction where either no one is interested in the property or almost everyone is. But for one to get the best deal in regards to a property at the auction, it is important to understand a few basic rules in buying foreclosed property.
Firstly, never bid on a property unless you’ve researched the title of the property which will also indicate whether any liens have to be paid off, just in case you are the winning bidder. However, almost all liens are processed during the foreclosure process except for the property tax lien, and this is something that you must watch out for before you make your move. Remember, that you have to pay off all liens to have a clear title, and only then will you be able to resell the house later.
Some of the other things to remember is to visit the property, decide what you intend to do with the property if it is bought, check for the amount of cash you need to carry with you if you are the winning bidder and most of all, get to the auction on time.