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Buying at Auction

Find and file properties
It’s important to get up-to-date auction information and act on it as quickly as possible. RealtyTrac subscribers can access our daily updated national database of auction properties online. Subscribers can also set up daily alert e-mails to be notified of new property posted on RealtyTrac.

Develop a system to keep track of properties that interest you. A good tracking system is important since most successful auction buyers pursue several properties sometimes over a period of several months. RealtyTrac subscribers can print out property details, save properties to an online preferred listing folder or download properties into a spreadsheet.

After you find a property online, it’s a good idea to drive by the property to get a better idea of the property’s condition and the type of neighborhood. For some buyers and investors, driving by the property has also facilitated a casual meeting with the owner (you may be able to still work out a last-minute deal before the auction) or yielded a wealth of unexpected information from a talkative neighbor.

Confirm auction status, location and bidding procedure
After a property is scheduled for auction, the owner has a chance (typically less than a month) to stop the auction by paying the amount owed to the foreclosing lender. It’s also not uncommon for auctions to be postponed without a new date being published. Although cancellations and postponements are announced at the time and location of the originally scheduled auction, you can call the trustee to find out beforehand. RealtyTrac subscribers have access to the trustee information for each auction property.

Most auctions are at a public place in the same county where the property is located. In many states, all the auctions in each county are at the same location. The auction location is usually listed on RealtyTrac for subscribers. If the auction location is not listed on RealtyTrac, you can typically get that information from the trustee or the county clerk. If you call the county clerk, make sure you clarify that you are looking for the location of mortgage foreclosure auctions, not tax foreclosure auctions.

The bidding procedure varies from state to state, so you should become familiar with the procedure in your area before bidding at an auction. In some states, bidders are required to bring the full amount they want to bid in the form of cash or cashier’s check to the auction. In other states, bidders are required to bring a certain percentage (10 percent is common) of the bid amount to the auction and pay the remainder of the amount within a certain timeframe if they are the highest bidder. If you get a friendly representative when you call the trustee, you might be able to get information about how the bidding works in your area, but in most cases you’ll need to educate yourself. You could also contact a local real estate agent or attorney in your area. Of course, the best education will come from simply observing a local auction.