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Once declared a home foreclosure, the lender will sell at public auction. That means anyone can bid to buy the property. You can find a list of upcoming auctions of foreclosed properties in your local newspaper. The auction will be held on the steps of your local county court. There are three types of auctions of foreclosed properties:

* Absolute Auction: The seller agrees to accept the highest bid.
* The auction is qualified: it is not necessary that the seller agrees to accept the offer of a bidder.
* The minimum bid auction: establishing a minimum price and potential buyers should be offered sums exceeding that amount. This is the most common type of auctions of foreclosed properties.

The price of a home run that is sold in auction is based on the unpaid balance of the mortgage (UPB, for its acronym in English) on the property, not the market value. When announcing the bid opening (also called “minimum price”), potential buyers can start bidding. Some auctions used verbal offer while others use the Read the rest of this entry »

Buying investment property is multi-tasking at its finest especially if you’re doing it in bulk. Aside from the post advertisements and the brokers all hollering that they have the best buys, some of the real deals slip right past many investors at property auctions. Those investors end up seeing the property again when a broker or another bulk buyer does a fast turn around with their auction bargain and relists it the same or next day.

When a property ends up at auction the motivated seller is usually way past motivation and sometimes is near desperation. While no one likes to profit from others bad fortune, but you may be doing them a favor and getting a nice purchase price at the same time since they seller obviously has a need to sacrifice the property.

You can get in on one these fantastic bargains when you spend the time to sit through a session or two and survey the auction property for sale. Not only agents and bulk buyers attend these auction, every investor has the right to look into the big pool by him or her-self.

The only difference between you and them is that you want to walk away with one deal instead of a bunch to resell. You may have to read, sit and sift through many items to find the one that fits your interests as far as location and condition, but rest assured that you can modify your buying criteria a bit when you start to see the prices housing sells for at auction.