Should you offer asking price on a foreclosure?

If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price.

Can a lender bid on a house if it is in foreclosure?

Anyone, including the foreclosing lender, can bid on the home at a foreclosure sale. Usually, the lender will bid on the property using what’s called a “credit bid.” If the lender is the high bidder at the foreclosure sale, it then gets ownership of the home.

Can a third party bid on a house in a foreclosure?

Other parties who bid on a property at a foreclosure sale must bid cash or a cash equivalent, like a cashier’s check. If a third party is the high bidder at the sale, the sale proceeds are used to repay the borrowers’ debt.

Where can you buy a house at a foreclosure auction?

Buying Foreclosure Homes at In-Person Auctions The phrase “real estate auction” often brings to mind the stereotypical image of a small group of investors, huddled around an auctioneer on the county courthouse steps. And in fact, almost all foreclosure auctions are conducted live in front of (or in a room inside of) county courthouses.

When does a court order a foreclosure sale?

If the court agrees that the borrowers have breached the loan agreement, the court orders the home to be sold at a foreclosure sale. (In two states, Connecticut and Vermont, the court may give the home’s title directly to the lender. This process is called a strict foreclosure .)

How to bid like a pro at a foreclosure auction?

Much like a traditional auction, a foreclosure auction allows potential buyers to bid on the bank-seized property. These auctions can be conducted in person (either at the actual site or in a public building) or online. There may or may not be a minimum bid or reserve (more on this to follow). How are foreclosure auctions advertised?

Where can I find the dates of foreclosure auctions?

Do your research In most regions, notices about upcoming auctions are published in legal newspapers or the legal section of the local paper. Zillow also posts foreclosure auction information on homes, including location, date and time.

Where can I go to buy a foreclosed house?

Foreclosed homes can be purchased through a public auction, often at a discount to their value. Nowadays, you can participate in the auction in person or online.

Do you need a deposit to bid on a foreclosure?

Many auctions, especially at the county level, require you to place a deposit before you can bid on a foreclosed house. The required deposit can vary, but typically is five to 10 percent of the expected final bid amount.