Buying A Home At A Foreclosure Auction Is Risky
Buying a foreclosed home is risky. Homeowners sometimes intentionally damage the property before the sale, or a financially-distressed homeowner might have put off doing repairs or routine upkeepperhaps for years. You could end up with a house that needs expensive work and renovation.
If you decide to bid on a property at a foreclosure auction, be prepared to take on a property that might need significant maintenance.
Because of the risky nature of buying a home at a foreclosure auction, these sales usually have a limited number of potential bidders. In fact, at many foreclosure auctions, the only bidder is the foreclosing lender.
How Does A Home Get To Foreclosure Auction
Of course, how a home gets to a foreclosure auction is another story. The process begins when a homeowner defaults on their mortgage or a tax debt. If the homeowner cannot make good on their default within a given period of time, depending on state law, the lender will have the right to schedule a foreclosure sale of the property as a means of recollecting the debt owed. In some states, the lender may have to file a case in court to be granted the right to foreclose. In others, they may just be able to proceed with setting a sale date on their own. In either case, if the homeowner does not pay off the debt owed before the sale occurs, the foreclosure auction of the property will go forward as planned and be awarded to the highest bidder.
Sealed Bid Contents Auctions
All contents on the premise of an estate property are sold in As Is condition at time of Sealed Bid Contents Auction. The Public Administrator makes no representations as to authenticity and/or value. All contents and sealed bid auctions are conducted and overseen by the Public Administrator of Nassau County. Appointments must be made 24 hours prior to the start of the auction. Once the Nassau County Public Administrator has notified the successful bidder, the bidder has five business days to confirm the bid with the NCPA in writing or the original bid is deemed null and void. After the successful bidder provides written confirmation, the bidder must submit payment for the bid to the Public Administrator of Nassau County within five business days of confirmation or the original bid is deemed null and void. When the payment has been made, the bidder has thirty business days to empty out all or partial of the contents of the property.
Please do not contact the Nassau County Public Administrator to schedule an appointment. All appointments MUST be scheduled by clicking on the hyperlink below, completing and submitting the form.
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Foreclosure Listings Subscription Sites
RealtyTrac. Theres a free 7-day trial after that, its $49.95 a month, with discounts on multi-month packages. Members get access to RealtyTracs proprietary information, including auctions dates and locations, pre-foreclosure addresses, owner information, bank loan amounts and more.
Foreclosure.com. After the free 7-day trial, its $39.80 per month. Subscribers receive detailed information on the listed properties, tax roll data, files provided by the lender, local school districts and other listing details.
Find The County Clerks Website
If you have a specific address in mind that you want to know the foreclosure auction results on, first determine the county that the home resides. Next, search for that county clerks website. Many counties have websites available to the public today. If you find the county clerk doesnt have a website, you can still use the below steps, but youll have to do the work in person at the courthouse.
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Phase : Notice Of Trustees Sale
Depending on the state, the process for initiating foreclosure is different. In some states, nonjudicial foreclosures can be done that only requires filing paperwork with the necessary court to start the process. With this, the foreclosure e process can move rather quickly. Other states have judicial foreclosures, which require court approval for each stepmeaning the process takes a bit longer.
Once forms are filed with the court or necessary approval is met, the lender’s attorney or foreclosure trustee will schedule a sale of the property. A notice of trustee’s sale is then recorded in the county where the property is locatedstating the specific time and location for the sale, as well as the minimum opening bid for the property.
The lender must also generally advertise the property in the weeks before the auction indicating that the property will be available at public auction.
The time from the notice of demand to the auction date varies by state, but can be as quick as 2-3 months. Up until the date of the auction the borrower can still make payment arrangements or pay the amount due, including attorney fees incurred by the lender to start the process.
Certificate Of Title Information
If you purchased a property at a foreclosure sale and you have not yet received your certificate of title, please check Certificate of Title Information for updates on processing times and issues that may cause delays in receiving your certificate of title.
When the certificate of title is issued, the Clerk’s office will eServe an unrecorded copy to all parties listed on the case who have provided email addresses. Plaintiffs/plaintiffs’ representatives must provide postage paid envelopes for those parties without email addresses. See more about Electronic Service of Certificates of Title.
Check the online auction calendar for the exact dates of upcoming sales, including a list of cases set for sale.
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Live Versus Online Foreclosure Auctions
The main difference between a live foreclosure auction and an online auction is how the winner is determined.
Live Foreclosure Auction
A live foreclosure auction is usually a big event. There may be hundreds of homes being sold. It is usually held at a county building, such as the courthouse. One property will be auctioned off at a time. Bidders will raise their paddles to raise the bid price.
The bidding continues until no more bids are being made. The last bidder is the winner and the auctioneer will move on to the next house.
Online Foreclosure Auction
An online auction usually takes place over days or even weeks. Each bidder will keep raising the price. Once the auction ends, the highest offer is the winner.
During an online auction, bidders will generally monitor the price and increase the bid slowly. Many times, there is a flurry of activity at the very end, as bidders race to offer a higher price.
One key thing to remember here is that your competition at a foreclosure auction will be very different. Since many potential buyers arent comfortable with how foreclosure auctions work, you might not be up against a large number of buyers. However, investors who are looking to make quick money will often attend foreclosure auctions.
Foreclosure Process Step : Default
A bank cant just start the foreclose process on a home whenever it wants. Homeowners have to first default on their mortgage, failing to pay their required monthly payments. And its rare for lenders to begin the foreclosure process after just one late mortgage payment.
They will usually give the borrower a grace period because they recognize the reality that people face temporary financial hardship at some point in their lives, explains Lisa Blake, a real estate broker and owner of The Blake Team in Aurora, CO.
That said, banks want their money, so borrowers can expect an influx of emails, letters, and phone calls from their lender or bank trying to collect.
Lenders usually offer alternatives during this period, including different payment plans to help the homeowner get back on track, keep their home, and keep paying their monthly mortgage bill. This is partly because its in a lenders best interest to make things workafter all, the lender wants its money. But its also the law in many states, says real estate attorney and broker Bryan Zuetel of Esquire Real Estate in Irvine, CA.
In many states, a lender or servicer cannot file a notice of default until 30 days after contacting the homeowner to assess the homeowners financial situation and explore options to avoid foreclosure, Zuetel explains.
Termed a foreclosure avoidance assessment, this period might include requests for a payment adjustment, interest adjustment, deferral, or other accommodations.
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How To Find A House Foreclosure Auction
Ahouse foreclosure auction can offer investors greater savings than many other avenues of buying real estate. In this article, we describe where to find foreclosure auctions and some key info to get started.
When a bank forecloses on a home, it is losing money without the owners payments. Thus, it is typically very eager to sell the property to a new buyer. The bank may therefore be willing to list the home at a much lower price than it would normally have, giving real estate buyers the chance to get a great deal. But before an investor can buy a foreclosed home, they have to find one first.
Rights Of Tenants During A Foreclosure
If there are tenants in the house that was foreclosed on, the new owner must honor the existing lease. BUT when the tenants have a month-to-month lease or the owner/landlord also lives in the home that is being foreclosed on, the new owner can evict the tenants or former owner/landlord. In these cases, the new owner may either offer the existing tenants a new lease or rental agreement or begin eviction proceedings. If the new owner chooses to evict existing tenants , the new owner must give the tenants at least 90 days notice before starting eviction proceedings.
- There are other rights that tenants have in eviction cases done after a foreclosure. If a tenant is not named in the complaint for the eviction, he or she may be able to challenge the eviction at any time during the case or even after the judgment for eviction is made. If you are an occupant of a foreclosed property where the new owner filed an eviction case, talk to a lawyer or call the Tenant Foreclosure Hotline at 1-888-495-8020 to learn about your rights.
Tenants in some California cities may still have a right to stay in their buildings. Cities with eviction or rent control laws prohibit new owners from using foreclosure as a reason for evicting tenants.
Help for tenants during a foreclosure
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This Auction Looks Awesome How Do I Attend
If you are like most people and have only seen auctions in the context of a fast-talking auctioneer on TV, then the process might seem intimidating. Where do you even start?
The first thing to remember is to show up at the right time. Allow yourself extra time and plan on arriving early if you are unsure of the exact location or are going somewhere youve never been before. These auctions usually dont take very long you might show up five minutes late and miss everything. Check out this article for tips on how to bid.
Make sure you understand what youre getting yourself into. With a foreclosure, you cant walk through the home before you buy it. There are no home inspections, and you will be responsible for any liens or debts on the home. And most importantly, you cant get a loan for a foreclosure.
You can find details about how the auction works and what you will need to bring with you in the foreclosure listing or the court office website. Often you will need a government-issued ID, appropriate documentation if you are not buying under your own name, and the funds.
Some lenders require the full payment amount at the time of the auction, while others require only a down payment, with the rest of the funds to be paid at a later date. Payment is usually required in the form of cash, money order, cashiers check or certified check. Personal checks and other forms of payment are usually not acceptable.
What Happens If A Foreclosed Home Doesnt Sell
If a house isnt sold at auction, the property becomes whats known as an REO, or real estate owned property. But dont assume this is a free pass to stay in the home.
If the bank owns the foreclosure, more often than not, they will arrive at the property shortly after the foreclosure date and kick you out, Blake warns. They might offer the previous homeowners cash for keys or relocation assistance, where the bank offers a certain amount of money to the previous homeowners to vacate the premise.
While you cant count on this money, it cant hurt to ask in case this sum helps you move out, and on with your life.
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How Can I Find My Final Foreclosure Date Now That The House Has Been Sold
- on Jan 17, 2013
Good morning,Foreclosure is the process of filing papers with the court , serving the papers on you, providing you with the opportunity to mediate and or object to the right to foreclose, a sale, report of sale and opportunity to object to the way that the sale was conducted. Foreclosure is not a date.Go to the court in Upper Marlboro and copy the entire case file. I will gladly review the file and talk with you about it, but you must act immediately. You can talk with my partner, John Bascietto, in Laurel, Maryland or send me the file — I live in Florida but practice in both jurisdictions.Good luck,
What Happens During A Foreclosure Auction
A foreclosure auction is very similar to most other auctions. The home will be announced, and bidders can place their bid amounts. In the end, the highest bid wins the house. It may seem like an uncomplicated process, but as with anything in real estate, there are some details you need to be aware of.
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How Do I Get Started
HUDHomesUSA.org makes finding your next home easy and fast! Let’s get started:
STEP 1: Create your profile: Tell us a little about yourself and the type of home you’re looking for.
STEP 2: Register for instant access to our database of nationwide foreclosure listings.
STEP 3: Search homes & connect with a real estate agent to purchase the home of your dreams.
How To Find Foreclosure Auction Results In Your County
July 23, 2018 by JMcHood
Finding foreclosure auction results requires a little detective work on your part. There isnt a specific list published that shows you the results. Instead, you have to do the legwork to find out the results of particular auctions.
The only exception to this rule pertains to states/counties that publish the results of auctions in the newspaper. If this is the case, you only have to wait a short period to see the results. If this isnt the case for your state/county, use the following steps.
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What Is A Foreclosure
Most people buy a home by borrowing part of the purchase price usually from a bank or a mortgage company. Other times, a homeowner borrows money against the equity in the property after the home is purchased, and this is called a home equity loan. Sometimes people refinance their mortgage loan and combine it with a home equity loan. In all these situations, the lender usually has a lien against the home to secure repayment of the loan. When a buyer fails to make the payments due on the loan the lender can foreclose, which means that the lender can force a sale of the home to pay for the outstanding loan.
For more information about foreclosure laws:
The law on foreclosure is changing often. Make sure you read the most updated laws.
Phase : Payment Default
Payment default occurs when a borrower has missed at least one mortgage paymentalthough the technical definition can vary by lender. After missing the first payment, the lender will reach out via a letter or telephone.
Typically, mortgage payments are due on the first day of each month, and many lenders offer a grace period until the 15th of the month. After that, the lender may charge a late payment fee and send the missed payment notice.
After the second month of missed payments, the lender will likely follow up via telephone. However, at this point, the lender may be still willing to work with the borrower to make arrangements for catching up on payments, which may include making just one payment to prevent falling further behind.
Once a borrower goes three months without making a payment, the lender generally sends a demand letter stating the amount in delinquency and that the borrower has 30 days to bring the mortgage current.
A mortgage in default can have three outcomesreturn to good standing, be modified, or the property is repossessed or sold via foreclosure or voluntary surrender.
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How To Find A Foreclosure
Ensuring your source is reliable can save you time and money.
Want to buy a foreclosure but dont know where to start? Seasoned investors know where to find foreclosure listings, and there are plenty of unscrupulous companies out there that have built ad-based, subscription websites to pull you in. Just beware: Many of these sites are filled with listings that are often inaccurate or outdated.
Below are eight ways to find foreclosure listings:
Buying Homes At Auctions
Buying homes at foreclosure auction is the best way to ensure you get the discount you want on your next real estate purchase. Whether you’re in the market for a new home for yourself or your family, or you’re looking to buy property for investment purposes, the savings you earn through buying at foreclosure auction are unlike anything you’ll find through an agent or on the open market. The discounts you’ll get at auction mean earning instant equity in your home, which makes generating investment value through appreciation over time or by flipping the home much easier.
Of course, there are plenty of tricks to the trade. Not every foreclosure property is going to offer top value, and you have to know how to pick and choose the right homes. You also have to know how to buy at auction. This means calculating costs ahead of time,and carefully planning your maximum bid so that you ensure you get the value you want out of your investment. It also take discipline to stick to your plan and not get swept up bidding more than you want to in the heat of an auction bidding war.
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