Foreclosure Auctions

Buying foreclosures at the Sheriff's sale, or public auction, can be a daunting process full of risk for the investor. There is also potential for a huge payoff if the sale is carefully researched ahead of time. Buying at auction is truly a skill, one that is now being heavily marketed as a method for getting rich quick.

Auctions provide a place where not only investors or those planning on living in the home can buy a property, but the lender of the defaulted mortgage as well. Real estate professionals know that lenders are far more likely than any other bidders to be successful at buying property at auction. Increasingly, however, aggressive investors are showing up at the courthouse steps armed with knowledge and ready to give them a run for their money.

Auctions may be crowded with eager bidders, or hardly anyone will be there. Simple things like bad weather can significantly affect turn out at a public auction, and investors may get an edge on the competition just by showing up. Auctions are generally advertised in the local newspaper, but it is wise to find out about them as far as possible in advance.

Finding Foreclosure Auctions

Nowadays, there is a host of ways to find out about foreclosure properties well before auction time. Many of these properties are still in the mortgage default phase, making it possible to negotiate directly with the owner. There are numerous real estate websites and organizations that market these properties to investors and others, often for a fee.