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All About Foreclosure Auction
I'm sure you heard auctions before. Bidding here and there and ends with a hammer knock. Well, auction is very intense and fast. And sometimes considered as exciting.
Auction is the second stage of a foreclosured home. After pre-foreclosure, if the home owner failed to get a buyer or settle the un-paid payment/loan, the foreclosured house will be then brought to auction in local court house.
This is where buyers, investors and even bankers gather to bid for their favorite properties. And therefore, the competition of buying foreclosure in auction is tough. One has to be really prepared to participate in auction.
For buying foreclosure in auction needs to make decision fast such as the bidding price. You have not much time to research on the title and property details. Anyhow, the fortune hidden in auction is huge too. Below are the advantages and disadvantages of buying foreclosure in auction.
- Up to 50% below market value foreclosure home.
- Handsome return for investment purpose.
- Lesser documentation works compared to per-foreclosure.
- Need a lump sum of cash.
- Little chance to inspect the foreclosure home, title and other info.
- Little time to do consideration in buying foreclosure home. (Bidding¡¯s fast and need to decide on the bidding spot)
The above are just some common advantages and disadvantages of foreclosure auction. However, the foreclosure process varies somewhat from state to state. You could learn the differences here.
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