subject: Get Your Head in the Game: A Guide to Miami Foreclosures Auction Events [print this page] Like other foreclosure market, Miami foreclosures also consist of three stages: pre-foreclosures, foreclosure and post-foreclosure. Out of the three, auction is the easiest and most accessible. Pre-foreclosures require experience; post-foreclosures need patience. Auctions, on the other hand, only require promptness and readiness. Here is a simple guide in surviving auction events.
Set the financing beforehand
If you think that pre-approval is useful only for traditional properties, think again.Miami foreclosures also require a pre-approved mortgage. Having one can help you avoid problems after winning a bid. So before you start looking at properties, invest a lot of time and patience in shopping for the right mortgage.
You will be hard-pressed in finding a lender that can provide the loan. Miami foreclosures are high-risk properties that many lenders stay away from. But with patience and a lot of determinationnot to mention, sturdy financial help to back it all upyou will definitely find the financing you need.
Research the process
First-timers mustnt be afraid of auction events. On the other hand, it is imperative to fully equip yourself with the basic knowledge of foreclosure auctions. Some things you must be ready for are: seasoned investors, cash (but other financing, like aforementioned, is possible), pre-inspection, lien and other money encumbrance.
Also, when you spot a property you want, remember to check the auction schedule and location. Regularly check this information as auction schedules are often altered without prior notice. This information is also available through the county clerk, or if you are attending a private auction, through a website or agency.
Set the bid amount
Now, this is the most crucial part. Set the amount too high and you're at risk for overspending; too low and youll miss out on a potential bargain. Several factors play a major part in determining the bid amount. The baseline number, however, should be below twenty-percent of the total home value.
Once you are bidding, you can easily get caught in the frenzy, especially if there are plenty of other buyers vying for the same property; focus and youll be safe. Observe how others bid but dont let their bid dictate yours. If the Miami foreclosures start to become a money pit, take a step back and think about your next move. Another property might be more advantageous, but that naturally depends on your willingness to give up your prior choice. Nevertheless, always remember to keep your cool.
