Where are Foreclosure Auctions held?

What are foreclosure auctions like?

• Do any properties go for very low (around starting bid price?) As a bank owned property will they sell for less than what is owed on the property or not? If you want to buy a foreclosure, what's the best way to go about it?

• Answer:

  Such auctions are short and fast. Generally lenders will not sell for less than is owed, unless they are aware that current market value is less than is owed. Then they bid against others until market value is achieved in the bid of another. No, such properties do not sell for starting bid price. They sell for close to market value. Understand, as well, that such auctions require very fast payment. You will need at least ten percent of purchase price at the completion of the auction, and the remainder in as little as two weeks. Thus there is no time to arrange financing in a conventional manner. Unless you are a cash fluid investor, the best way to buy a foreclosure is through your local real estate agency. I surmise that you've seen too many late night infomercials indicating that you can buy such properties extremely inexpensively. That's not the way it works.