You can find foreclosure auctions near you, and the homes being sold there, a number of ways. A quick search online or in your local paper will probably tell you if, where, and when house auctions happen. But, asking around may be just as helpful. Since foreclosure proceedings, including court judgments that send a home to an auction, are made public, check directly with your local government office, too. Sales are frequently canceled for a variety of reasons, like a bankruptcy filing.
Perform your due diligence. Since the condition of foreclosure homes, and whether or not they come with additional liens and encumbrances, is never guaranteed, so the auctions themselves recommend you run a title search at the very least. If you can, I suggest you drive by as well.
That particular house—or, money pit as it may be if it comes with foundation issues and liens—is yours. Line up funding. This requires knowing your maximum bid well in advance and having access to cash to cover it fast. Of course, this can be difficult to do, too. And, because you have to close quickly—sometimes within 24 hours—there is no wiggle room to work with a traditional Florida lender and very little to take out a hard money loan to buy the property.
Attend, bid, and buy. Your next step is to go for it; attend the auction, bid for a property, and, if you win, close the deal. Similarities on how to bid and buy exist across counties since most now use the same online system to manage their auctions. If you are planning to bid, decide how much you are willing to do in advance.
Be prepared to bid and exceed other offers in set increments until you reach the limit you set for bidding. Buying a foreclosed property can be a good avenue to finding more affordable homes in Florida. Investors can expect to find properties for better prices at these auctions, but with the caveat of not always being able to inspect them first. If you are prepared for that risk, you should go into the auction with a plan and a maximum bid limit.
Floridian real estate has always performed well and foreclosed properties can be great profit-earners for the right investor. Foreclosures are not the only way to find undervalued properties in Florida. This post has more details on how to find the best off-market real estate deals. Terms of Service Privacy Policy. The Lender. July 30, Reading Time: 3 minutes. The Basics of Foreclosure. The Foreclosure Auction. The Pre-Foreclosure. What Else Investors Should Know. Bonus Tip.
Pre-foreclosure means that the homeowner is behind on the mortgage, but the bank has not yet foreclosed on the property officially. In Florida, the pre-foreclosure process can last anywhere from 8 to 14 months from when the first payment is missed before the bank repossesses the property.
Pre-foreclosures present the best opportunity to view the property before you purchase. You would be buying the home directly from the homeowner, not the bank or other lender. That way, they can satisfy some of the debt and save the bank the hassle of repossessing it and selling it at auction. But keep in mind that you may be responsible for paying the outstanding balance on the mortgage or any other liens on the property.
If the homeowner does not short sale the property, it will be repossessed and sold at an auction to the highest bidder. Florida house auctions can be a great way to snag a great deal on an investment property. Otherwise, you may get caught up in the excitement or get stuck with a money pit. Auctions are typically held live in front of the county courthouse or at a location approved by the local government.
You can also bid on foreclosed properties online. In some cases, you may be able to contact a representative of the lender and inspect the property before the auction.
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