Author Box
Articles Categories
All Categories
Articles Resources

Buying a Home at Auction? Here's What to Watch For

April 15, 2012 | Comments: 0 | Views: 117

With the state of the economy as it is, with a housing bubble that has burst in a big way, there seems to be no shortage of homes on the auction block. You hear wild stories about buyers picking up these huge homes for just pennies on the dollar and you start salivating. Is it really that easy? What do I have to watch for?

Yes, there are a lot of homes offered in real estate auctions almost everywhere you look, but if you don't do your due diligence you may be walking into a big problem. Here are some things you need to be aware of before you put down any of your hard earned cash.

For most would be buyers the biggest hurdle that must be overcome is the fact that most auctions are cash transactions only. That doesn't mean a mortgage is never allowed on a house bought on auction, is just that it's not the norm.

Maybe you've heard the stories about homeowner trashing their home when they realize they are going to lose it; well some of them do it. Homes offered at auction are sold on an as is basis so if the carpets have been torn up and there's mud smeared all over the walls there's nothing you can do about it. The other thing here is that there is no inspection allowed on the homes so you will have no way of knowing what you may or may not be walking in to. The bank is also not allowed to make any disclosures about the property's history/condition issues.

You could end up owning a property that has liens on the title, like one for back taxes. The house may not be so cheap after you have cleaned up the title. For that reason you should do your own research on the title before auction day. If the title's not clear and you find that you will have to pay $15,000 of liens just make sure you remember that when you are deciding on how much money you are able to spend.

In the end, after you've done all your homework here and have determined you have found a great house, the bank may decide that they won't get a good enough price and my just step in and buy it anyway. Probably the most important thing you can do here is to do your research. That way you should be able to minimize the risk you take. Good luck and happy bidding.

Shopping for Los Angeles Homes for Sale? Come visit now.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Homes Offered


Auction Block


Foreclosed Homes


Homes For Auction


Problems With Auctions

The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Liva l Real Estate > Buying l November 20, 2012 lViews: 258

The main reason why people tend to be apprehensive about moving homes is that it entails packing everything in the home, transporting it and then unpacking it in the new home. The entire process of

By: Ringo Star l Real Estate > Moving Relocating l October 27, 2012 lViews: 211

There are a number of benefits to owning a second home. Buying to let is a long term investment. The property will usually accumulate value over time and also can generate rent on a shorter term

By: Alan Trotter l Real Estate > Investing in Real Estate l October 19, 2012 lViews: 241

Building a home, especially your first one, can be an incredibly daunting task - there are a number of factors, including budget and planning, that must be taken into account before any sort of

By: John K. Taylor l Real Estate > Building a Home l July 10, 2012 lViews: 333

When you're ready to sell your house, the first thing you'll probably do is find a real estate agent to help you through the process. It can be so inviting to seek out the discount Realtors who offer

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 263

You see the signs everywhere, especially in a strong economy: For Sale By Owner. For some reason, many people believe they'll do a better job of selling their homes without the assistance of a real

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 241

In today's real estate market, potential buyers frequently find short sale homes and houses close to foreclosure. Some homes have already been foreclosed and are now for sale by financial

By: Jeremy P Stanfordsl Real Estate > Foreclosuresl June 01, 2012 lViews: 203

Buying foreclosures at a distance can be challenging. Use these tips to help you make good decisions.

By: Aloysius Aucoinl Real Estate > Foreclosuresl June 01, 2012 lViews: 164

Fearing losing their house is quite nerve-racking for a number of house owners. Regrettably, foreclosures are happening a lot more frequently than previously and are frequently a result of breakup,

By: Steven Johanssenl Real Estate > Foreclosuresl May 31, 2012 lViews: 183

If you are trying to decide whether hiring a foreclosure attorney is worth your time, maybe it is time for you to take a better look at your current situation. If you have been served with a

By: Abraham Avotinal Real Estate > Foreclosuresl May 31, 2012 lViews: 157

Home foreclosure as suggested by its name means a scenario where a property owner is not able to make repayments of principle and interest repayments on their home loan, therefore the loan provider,

By: Demetrius Weatherspoonl Real Estate > Foreclosuresl May 30, 2012 lViews: 199

On the subject of purchasing a new house, most likely the primary thing on everyone's brain is if they will be able to locate the home they desire within their budget. It looks like everywhere you

By: Demetrius Weatherspoonl Real Estate > Foreclosuresl May 30, 2012 lViews: 165

If you are going to purchase a home or refinancing an existing one there are two loan types that are the bread and butter of most lenders; the thirty year fixed, and the 2/28 arm. The thirty year

By: Keith A Campbelll Real Estate > Mortgage Refinancel April 17, 2012 lViews: 126

If you're getting ready to refinance your home or buy a new one, one of the things you have to decide what type of terms you want for your loan. Two of the most popular choices are the 30yr fixed and

By: Keith A Campbelll Real Estate > Mortgage Refinancel April 14, 2012 lViews: 95

Whether you're planning on buying your first house or your fifth, agents will take you more seriously if you have either a pre-approval letter or a pre-qualification letter. This is especially

By: Keith A Campbelll Real Estate > Buyingl April 09, 2012 lViews: 293

Discuss this Article

comments powered by Disqus