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Attending Your First Set Of Public Foreclosure Auctions

Lenders with distressed properties would want to sell these homes off at public foreclosure auctions to recover their losses from the investment they made in providing the loan in the first place. Since the lender would only want to go after the remainder of the unpaid debt, the homes are auctioned off at a low opening bid.

This is the reason why buyers are particularly interested in public foreclosure auctions. The possibility of realizing great savings and of course instant equity is simply too hard to resist. First time buyers interested in joining auctions need a few pointers to set them off in the right path.

The first thing to remember is that auctions are cash sales so you need to be financially prepared for this endeavor. The homes are sold as is and there is little chance of conducting a formal home inspection to be conducted by a professional. Prospective bidders would have to make the effort of researching the properties they are interested in to determine if it is good enough for them.

Preparing for Auctions

Check out foreclosure auction listings from a variety of sources and pick the one that you like. It is recommended that you have more than one home to closely consider as there are no guarantees you will end up the winning bidder in any auction.

Conduct a title search or commission an expert to do it for you. The title of the property can be found at the county courthouse. This title search will reveal whatever liens or back taxes are still owed on the home. All these encumbrances will transfer to you if you win the bid.

Drive down the address of the home and survey the home as well as its surroundings. You may also speak with residents to gain insights on the home and the general vicinity.

Make sure you have all the information on the public foreclosure auctions you will participate in. More than the schedule and venue, you must know how the auction proceedings go. A good practice is to watch one or two auctions first to observe before you start bidding on your auction.

Foreclosure – How to Live in Your Home For Over 2 Years

The time frame for a foreclosure is described as the time you miss making your first mortgage payment until you are served with an eviction notice by your county’s sheriff’s office. A basic foreclosure takes anywhere from three to six months if you do not fight it.

You can expect the financial institution to start phoning you after the first few days of your missed due date. If you have already missed one payment or more, you have already been contacted probably numerous times. If you ignore the calls and do not contact them back and you do not respond to three collection letters, you will be receiving a Foreclosure Summons.

You have twenty days (time frame will be stated- depends on your state), to set a hearing before a judge to give your detailed side of the situation and supply the reason why you are defaulting on your loan. Be prepared! Most hearings are denied. This is just a way to stall.

Once you lose your hearing, the judge will then tell the financial institution to go ahead and foreclose on your home. They will then proceed to sell your home at the local property auction. The time frame to leave your home is about one week or you will be evicted by your local law enforcement.

As I stated, the time frame can vary greatly depending on how you handle the situation. Some homeowners have been evicted from their homes in about three months after their first unpaid month. Others have happened in around six to seven months. If you are determined to fight the process, you maybe able to live in your home for two years or so. This is after the foreclosure has been started too.

You do have options along with your foreclosure. Some options to check out are the following:

1. A Special Forbearance.

2. Deed-In-Lieu Of Foreclosure.

3. A Pre-foreclosure Sale.

4. A Partial Claim.

5. A Mortgage Modification.

The above options are not meant to guarantee that you will be able to keep your home. In some cases, you may get evicted even sooner. These are just some things to consider and talk over with a professional in this field.

There are ways to delay the process of foreclosure and to keep living in your house without making your payments even without qualifying for the Obama’s Loan Modification Plan or any type of program along these lines. Most persons do not know the ins and outs of the strategies that are out there for fighting your foreclosure. You could save thousands of dollars by fighting your foreclosure and living in your home free of charge.

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