If the owner of the property fails to redeem the foreclosure by paying an agreed upon amount, or making arrangements to do so, the property proceeds to a foreclosure sale. Foreclosure sales must be publicly announced and certain regulations adhered to. Depending on the local ordinances, there may be a requirement for a minimum bid, and there is nearly always a requirement that the winning bid must be paid in cashiers' check at the closing of the auction. The sale is by auction, and there is a requirement that the highest bid be accepted - even if that bid is from the current owner.
The city clerk's office and your local newspaper are the two best sources of information on upcoming foreclosure sales.
Less common but not unheard of are sales of properties deemed to be abandoned. These are generally held by municipalities and towns in an attempt to recover back taxes owed on a property. A thorough title search will reveal if there are any liens or other debts outstanding against a property. A tax foreclosure sale can be one of the most profitable for a real estate investor if there are no other outstanding liens against a property.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125