What happens to a home after it's gone through foreclosure? It makes it way to one of several foreclosure property auctions in the area. When a homeowner fails to make the required mortgage payments, they have defaulted on their mortgage contract and the lender can take back the property. This is also known as foreclosure. Banks are not in the real estate business, in fact when they have a foreclosure property on their books it is considered a bad debt. So banks are very motivated to sell the property.
Foreclosure property auctions are places where anyone can come in and if qualified bid on foreclosure property for sale. Most of the time lenders do not use the market value to come up with the price of the property they wish to sell. They will total the remaining house auctions near meamount on the mortgage, add to that the expenses incurred to get the title to the property and any expenses they might incur in selling the property. This is the price the bank will try to sell the house for. Usually at foreclosure property auctions the bidding will start with that minimum amount. If there are no takers then the property becomes an REO property or real estate owned.
Before attending foreclosure property auctions, you need to do research on the property or properties you're interested in purchasing. You need to have a maximum price above which you will not go. You have to keep your emotions in check, and not get excited during the bidding and bid more than you're able to pay or pay more for a property than it's worth. Always attend one or more auctions first before you go to bid on a property. You need to be familiar with the process so you don't get confused and mess up your chance to get the property you want. You also need to be ready to walk away from a property if you find out some information about it that does not make it as worthwhile as you thought in the beginning.