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Houses For Auction - Buying Houses at Auction

sale time journal information

When you are considering buying a house at auction you should do your homework, most of which can be done at home with a computer and a telephone. It is important to research the list of pending home sales in your area. To do this you must find a website with accurate information about foreclosures in your area. The Journal of Commerce is one of the most reliable and versatile sources of correct data on houses for auction that are in foreclosure.

The Journal of Commerce costs about $350 for a year membership. This initial investment is worth it because you can save tens of thousands of dollars when buying your next house at auction. After you have joined the Journal of Commerce, you can log in any time. Click on the real estate link and the pending sale date for your county will be displayed. Your goal is to get a complete list of households that are pending sale for public auction in your area. Auctions are usually held every Friday at 10:00am at the local county courthouse. The location of the auction and the date will be in the daily trade journal reports next to the address of the properties.

Note that foreclosure information is subject to change daily, as a landlord may to come up with the funding necessary to get caught up on the mortgage note and cancel the sale. Foreclosures are often postponed weeks, even months, as owners in trouble continue to try to buy more time. Therefore, you should only investigate houses for auction that are very close to the foreclosure date of sale.

To research the properties in your area that are being foreclosed on, or are pending a trustee sale, as it is called, you should contact the trustee directly. You may also reference the Journal of Commerce report for the latest information about the auction. There are several trust companies that handle different properties. You should contact the administrator of each sale that you are interested in pursuing. Some trust companies provide good online information through their websites, complete with color photographs and background information about the property. Smaller trust companies without a website required an informational phone call.

It is important to keep in mind that the buyer is responsible for multiple mortgages and charges related to the property. A prospective buyer can research any liens on the title through the Journal of Commerce website. There are other sites that also provide this information for a fee. You want to be sure that at the time of the auction, you are bidding on the first mortgage because if there is a second mortgage, you are responsible for that too.

Also, it is critical to search the public records to be sure that there are no tax liens on the house for auction because you will be responsible for any property tax at the time of the sale. The ideal situation is to find a house with a first mortgage and no tax liens that is being sold for half or one third of its fair market value. Thus, the price you pay at the auction, including title fees and transfer fees, may be far less than the actual value of the home.

When inquiring about the auction, the trustee is only legally allowed to disclose the date, time and place of auction, and whether the auction is deferred or not. The trustee will also be able to tell you the amount of the initial offer. The starting price is set by the benefactor and the bidding starts there. All interested bidders must possess at the time of the auction, the total amount for which they intend to bid in the form of a cashier’s check or cash.

If you do not know what the starting price will be before the house auction, and often the buyer does not, how do you know how much to bid? The answer is only what you can afford to bid. You should do your research on a prospective home and determine its dollar value to you, and place a ceiling on the amount you are willing to bid. You cannot bid more than you have. Personal checks, approved loans, credit cards, and trips to the bank are not allowed. You must decide what your budget is in advance, and carry that amount in the form of a cashier’s check or cash. A cashier’s check can be made out to you, and if you are the winner at the auction, you can simply sign your check over to the trust company that is auctioning the property.

Houses In Foreclosure - Tips on Houses in Foreclosure [next] [back] Houses For Sell - Houses for SELL: How to Find Houses for Sale Anywhere in the US - Online Resources, Local Realtors

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