WHAT IS A FORECLOSURE AUCTION?
A foreclosure auction refers to a public disposal of a piece of real estate because the property owner defaults in the payment of his debt at the due date. This occurs mostly when a home owner is unable to pay back his mortgage loan. A foreclosure auction can also be called for if owner is liable to the government in terms of tax payments. Foreclosure auctions are not restricted as it happens on all types of real estate either residential or commercial.
Foreclosure sale is most common with auctions and it occurs almost every day all around the world. If you considering selling or acquiring a real estate either commercial or residential, foreclosure auction is one of the best sources you can find. Most of the foreclosed homes sold through auction goes for a price well below the true market value as lenders looks to dispose the real estate as soon as reasonably possible.
And fortunately, these foreclosure auctions are open to everybody who is capable and qualified.
How does the foreclosure auction work?
Acquiring a home at a foreclosure auction is in many ways easier than through a foreclosure agent. Since auctions are open to the public, all you have to do is to obtain the information about the sales in terms of place, time and date. And when the auction is on you attend and bid. It is as simple as that. If you are the highest bidder, the foreclosed property will be awarded to you as soon as you make the required payment.
If you want discount on your real estate purchase, foreclosure auction is definitely your best bet. The profit or savings you will earn from foreclosure auction is unlike the one you would be able to get in the open market or through an agent. And this includes whether you are looking for a commercial or residential estate, or for just investment purposes.