Belt Auction

US home auction?

Good day.. I was recently watching an information for US home auction. They are selling foreclosed homes. Has anyone been to this auction recently and what are the pros and cons involved in purchasing a foreclosed home.

Public Comments

1. Stop watching infomercials. You must pay with all cash. You will never necessarily find a good deal. The lender places a minimum bid to cover themselves, and bidding is so competitive that it ends up at market value or more. Most of them sell over priced, and the ones that dont sell go back on the market as REO's. You will also find it hard to inspect the house before you bid. If you want to bid, do some extensive research, not just some internet price check. Really risky business. You could over pay for a house in horrible condition, with leins in which you owe money. Just being realistic.
2. It might be a great outfit, but there are far better ways of purchasing foreclosed homes than going to these auctions. First - you have to conduct all inspections at your own expense ahead of the auction, not knowing if you're actually going to be able to purchase the home. If you don't have the highest bid, you just lost the cost of the home inspection. Second - you don't know the reserve price, the price below which the bank will not accept an offer. The opening bids you see advertised are artificially low in hopes of attracting interest. Even if the bidding doesn't bring the price substantially higher, the lenders nearly always have a reserve price below which you will not be getting the home. So you can walk away on Saturday believing the home is yours only to learn on Monday the bank rejected your offer. Contrast that with looking for you house by yourself on the web-site of Fizber: http://www.fizber.com , it is the best resource on the web covering real estate market in the USA. Best of luck.