Foreclosure Auctions: Things To Do Before You Bid
There are several things that you need to consider if you want to bid on real properties during foreclosure auctions. Always remember that foreclosure auctions involve some legal obligations thus you need to make sure that you know what you are getting into before you place your bid. To help you get started in the right direction, here are some things that you need to do before you start bidding.
Know The Law Governing Foreclosed Properties
Foreclosed real estate properties are subject to redemption of the original owner within a given period of time. Since different states may have different laws governing redemption of foreclosed real estate properties, you need to study the foreclosure laws of your own state. Read books regarding this matter or if you wish you may talk to a real estate lawyer about these matters. Knowing the laws governing real estate foreclosures is very important; so do not take these things for granted.
View The Property That You Plan To Bid On
Take the time to visit the property that you wish to bid on at the foreclosure auction. Always bear in mind that the pictures of the properties do not really tell the whole story so you need to inspect the property before you do decide to put your money into it. Most companies that run foreclosure auctions will give you time to view the property days or even weeks before the scheduled foreclosure auction so take this opportunity.
When visiting the property before the foreclosure auction, make sure that you check all the rooms of the house. You may also bring an engineer or an expert with you to test the foundation of the house, the plumbing and other structural or mechanical concerns. You don't really want to end up with a house that is about to fall down so make sure that you do a thorough inspection of the place.
Get Pre-Qualified
Once you have made up your mind about a certain foreclosed property, get pre-qualified. Being pre-qualified means that you inform the company who owns the property that you already have the money to pay its price. Being pre-qualified is a big leverage during foreclosure auctions, so make sure that before the scheduled foreclosure auction you already have your money ready or that you already have an approved credit line from a financial institution. Finding a financial institution that will give you the much-needed credit line is not really a problem especially if you have good credit history.
