subject: Buying Foreclosure Properties At Auction [print this page] There are many ways to buy foreclosure properties, but one of the most inexpensive ways to buy and one of the fastest is through a foreclosure auction. A foreclosure auction is a public auction at which a sheriff or other authority sells off a home to the highest bidder. This can be a very inexpensive way to buy foreclosure properties, but you need to be prepared for the process.
A foreclosure auction moves very fast, so it is important to do plenty of preparation first. Learn about foreclosure laws in your state and read about foreclosure auctions and auction strategies at your library. Join a local real estate investors club or work with an investor who can be a mentor to you and can teach you about auctions. Auctions are often attended by professional real estate investors, so you will need to understand the auction process very well if you want to bid successfully and well. It is also a good idea to attend several foreclosure auctions without bidding.
Once you are confident and knowledgeable abut foreclosure auctions, you will need to arrange financing. At most auctions, the successful bidder must pay for their foreclosure properties up front in cash or with a cashiers check. This means that you not only need to be pre-approved for financing, but you need to have a loan that can cover the entire cost of the property. You may need to consider lines of credit, personal loans, or hard money loans, which give you access to cash immediately. This allows you to buy foreclosure properties at auction.
