You have probably heard about foreclosure auctions and heard they take place on the courthouse steps. Is that really true? Well, it really is!
The world of forecosure auctions is complex and requires research and the knowledge base to know what to research. You will also need to know where to find those answers. But the months and months of late payments, fees, attempts to sell a property, attempts to negotiate with the lender or lenders all culminate in the finality of the auction. At that time the lender requires a minimum bid, and bidders can choose to make higher offers or not bid at all. In Oregon, since we are a Deed of Trust state, the auction is final. Final. There is no period of time in which the former homeowner can reinstate his/her loan.
Even in beautiful Bend, Oregon, we are seeing a rise in foreclosures, and any search of Bend Oregon homes for sale, Central Oregon ranches and farms or investments can be enhanced by reviewing the upcoming foreclosure auctions. These are in some cases in the MLS listings for Bend, but in many cases the properties are not listed at all. If the banks do not have bidders who acquire the property, they will come back on the MLS eventually as bank owned property.
Recently I did attend such an auction with investors who were interested in a particular home. We read the posting on a foreclosure website (there are several -- call me or email me if you want some suggestions) along with the amount that the lender was requiring as a minimum bid. We researched the home, drove by it and pulled public information on it -- age, size, liens, etc. In addition, a market analysis I did showed that if it went for around that minimum bid it would be an excellent price for which to purchase the home.
At auction you will need cash or proof of cash to show to the "crier," the person hired to read the information about the property and conduct the auction. Then you literally gather in the courthouse on the stairs and the auction begins.
You can get a great deal at a foreclosure for a personal residence or investment property, but let the buyer beware!