There is some increased competition at area foreclosed home auctions, however, as traditional sales are rapidly finding multiple offers on the same properties and making it difficult for non-cash buyers to get an acceptance. Yet there is a bright side to home auctions, and that is the fact that lenders are guaranteed to accept the best market offer at the auction, and buyers that do their homework and arrive with lender financing from the auction-approved lenders will find a successful transaction.
For best results at Southern California foreclosed home auctions follow these basic rules:
1. Register with the auction company. Most auction houses have online forms where prospective bidders can register. This will also put you on their mailing lists so that news of upcoming foreclosures auctions is sent your way.
2. Understand the earnest money deposit. Each auction house has different rules but most require a minimum deposit on auction day of at least $5,000, or 5% of the sale price. Come prepared with a cashier's check payable to yourself on the day of the auction.
3. Take advantage of the pre-auction inspection dates. Bidding on a property sight unseen is dangerous and could end up costing you significantly in terms of repairs and other improvements that might be required just to make a home inhabitable.
Real estate auctions offer prospective home buyers one of the best opportunities to own one of the many Southern California foreclosures still available. Lenders are working hard to clear their inventories of REO properties, and using the major auction houses to hold massive multi-property auctions is a fast an efficient way of selling dozens or more foreclosures quickly. If you find you're shut out of the traditional buying route, consider bidding at a foreclosed home auction in your area.
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light not our darkness that frightens us. Actually, who are you not to be? You are a child of God. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure around you. We were born to make manifest the glory of God that is within us.”
- Nelson Mandela