Proceeding to the Foreclosure Sale

Prior to the foreclosure sale, the homeowners can work with the lender or their attorney to delay or cancel the foreclosure sale. In other words, just because you see a foreclosure notice in the local paper doesn’t mean that if you show up for the sale, that property is going to be auctioned off. Calling the attorney in charge of the foreclosure prior to the sale is a great way to find out if the property is going to be offered at the sale. The attorney’s name is usually listed on the foreclosure notice. At the foreclosure sale, you have an opportunity to bid against other investors for any properties being auctioned off. Some auctions have open bidding, whereas others use a sealed bid system. However your county chooses to hold its auctions, a few words of advice can assist you in acquiring properties and not losing your shirt:

• Sit in on at least five auctions before bidding to get a feel for the process and gather information.
• Research the property thoroughly before you bid.
• Buy only senior liens (first mortgages). You can really get burned buying junior liens because foreclosure typically wipes these off the books. When you have more experience and knowledge, you can start working the junior lien circuit and tax liens.
• Set a maximum bid and never ever exceed that amount, no matter how juiced up you get at the auction.
• When you plan to bid, show up with a cashier’s check. Most auctions require payment at time of purchase or within an hour.