Why Buy a Foreclosure Property?
- Foreclosure properties can be excellent investments for real estate investors or homeowners.
- Foreclosure properties have the potential for a high return on investment.
- Foreclosure properties from Auction.com are sold in a transparent auction marketplace.
The Benefits of Buying a Foreclosure Property
The foreclosure auction process is the method by which the home will become “foreclosed”, at which point it will be sold via public sale to a either bidder or the lender (also known as Real Estate Owned or REO). Buying foreclosure properties can be an excellent investment strategy for real estate investors or homeowners looking for a fixer-upper or a home not on the traditional market. . Here are some reasons to buy a Foreclosure property.
- Entrance into investing: Foreclosure properties can be less expensive to buy, so this can be a great way to start investing in real estate.
- Opportunity to renovate: Foreclosure properties may present the opportunity to renovate and customize the home for rental or flip.
- Potential for investment: Foreclosure properties can have a high return on investment because purchasers can increase the home’s value by renovating it, then sell the property for a profit or rent it out.
- Buying through Auction.com: Auction.com is the leading, distressed real estate auction marketplace in the nation and offers a transparent auction marketplace in which to buy Foreclosure properties.
How to Buy a Foreclosure Property Through Auction.com
- Do your research. Before you start shopping, it is important to do your research and learn about the Foreclosure process. This will help you avoid any surprises.
- Secure your payment. Buyers will typically need to produce cashier’s checks in the total amount they are willing to spend on an auction. Depending on the state you are buying in, there can be a deposit due upon winning the auction. For buyers looking to remotely bid through Remote Bid™, their funds need to be held in an escrow account in the total amount they are willing to bid up to. Remote Bid™ is not available in every state, so please check before proceeding with the remote bidding process.
- Find Foreclosure properties. There are several ways to find Foreclosure properties. The easiest way is to search online. You can search Auction.com (the largest online source of properties not on the MLS) or attend Foreclosure auctions.
- Research the property. Before you make an offer, it is important to do your research regarding the property. This will help you identify any potential problems.
- Be prepared for the auction. The seller will set the credit bid on the property at auction and if that amount is not reached, the property will revert as REO.
- Place your bid. If the credit bid is reached, the property will sell to either a third party purchaser or as a revert to the lender.
Buying a Foreclosure property can be a great way to get a good deal on a home. However, it is important to do your research and understand your own ability to execute home improvement and repair before you make an offer. Auction.com has summarized the Foreclosure auction process for you into three steps:
- Pre-Auction: Browse properties, conduct your due diligence, and prepare your funds.
- Auction Day: Check property status, register to bid if able, and bring your payment and ID.
- Winning Bidder: Pay for the property, get the deed, and gain possession.
For more information regarding buying foreclosure properties, visit Auction.com’s help center.
Links To Helpful tools:
- Remote Bid™: The future of Foreclosure auctions. Browse, bid, and win select Foreclosure properties from anywhere with ease. Qualify for Remote Bid™ or meet with a specialist today.
- Frequently Asked Questions: Find answers to frequently asked questions from Auction.com users.
- Foreclosure Home Properties Help Center: Navigate through a Foreclosure auction with confidence using our quick access guide. Learn terminology and catch up on state requirements. We have tailored sections for Foreclosure and REO properties.
- Real Estate Auction Calendar: Find real estate auction events in your area. Filter by state, asset type, and date to get a list of properties near you, or search Auction.com to start a list of properties with our useful filters.
- What is Auction.com? Find out what auction.com can do for you.
- Start your search! Visit the Auction.com search page to find all our foreclosure & bank-owned homes
Create a free Auction.com account