Here’s a quick checklist to follow if you are interested in purchasing at the public foreclosure auction (NTS, NFS).

• 1. Prepare your resources

  Make sure that you have the resources in place to purchase the property. You’ll need to have readily available cash available because foreclosure home auctions usually require full payment in cash. Enlist the help of a buyer’s agent if you’re not comfortable attending the auction and bidding on your own.

• 2. Confirm property status

  Check the Auction section on this property details page to find out the date, time and location of the auction. If it’s the day of the auction, you may want to call the trustee or attorneylisted in the Foreclosure Contact Info section of this page to check if this auction has been canceled or postponed. While RealtyTrac often provide auction updates, many auctions are canceled or postponed at the last minutefor a variety of reasons.

• 3. Evaluate bargain/investment potential

  Determine if this property represents a good bargain or investment opportunity. Start by comparing the property’s Estimated Market value to the Opening Bid (if not on the property details page, try calling the trustee or attorney to get the opening bid) at the auction or the List Price if the property is listed for sale. If either of those amounts is below the estimated value, this may represent a good bargain purchase. Also check the Trends tab on the details page to seethe average discount that foreclosure buyers are getting in the zip code. That will give you an idea of the type of discount to reasonably expect on this real estate auction.

• 4. Attend the auction and bid

  Bring the necessary funds required to the auction and don’t exceed your pre-determined maximum bid amount. Foreclosure auction procedures vary from state to state so it’s wise to attend a few auctions just to observe before you go to bid. Of course, if the property is listed for sale you or your buyer’s agent can contact the listing agent to submit an offer before the scheduled foreclosure auction.

• 5. Pay and take possession

  If you submit the winning bid at the auction, the trustee or referee should provide a certificate of sale or a trustee’s deed. You’ll either have to pay the full amount of your bid on the spot or within a limited timeframe depending on the state. Once you’ve satisfied all the necessary requirements, you can take possession of the property, which may require eviction of the former owner. If you are a RealtyTrac member, you can save an auction property and get email alerts that will notify you if the foreclosure status, auction date/time or market status of the property changes.

Here’s a quick checklist to follow if you are interested in purchasing a bank-owned (REO) or Government Owned property. Keep in mind that not all of these properties are listed for sale with a real estate agent.

• 1. Prepare your resources

  Make sure that you have the resources in place to purchase this property. Get pre-qualified for a loan if you haven’t already and enlist the help of a buyer’s agent if you’re not comfortable contacting the bank or listing agent and navigating the negotiations and closing process on your own.

• 2. Evaluate bargain/investment potential

  Determine if this property represents a good bargain or investment opportunity. If the property is listed for sale, a good place to start is to compare the List Price to the property’s Estimated Market Value. If the list price is lower than the market value, the property could represent a bargain purchase. If the property is not listed for sale, you’ll want to look at the Trends tab to see the average discount that foreclosure buyers are getting in the surrounding zip code. That will give you an idea of the type of discount to reasonably expect on this property.

• 3. Contact the lender/bank or listing agent

  If the REO property is listed for sale on the MLS, you or your buyer’s agent can simply contact the listing agent. If the REO home is not listed, you or your buyer’s agent will need to contact the lender that now owns the property to express your interest in the property. Check in the foreclosure details for the Owner to see which lender currently owns the property.

• 4. Submit an offer and close the deal

  The lender’s REO or asset management department will let you know how you can view the inside of the bank-owned property and how to submit an offer for the property. If your offer is accepted, both sides simply need to satisfy the terms of the purchase agreement to close the deal. Although many lenders will sell the property “as is,” meaning you as a buyer are responsible for any needed repairs, you should make your offer contingent on a professional home inspection so you are aware of the repairs needed.
  If you are a RealtyTrac member, you can recommend that you save bank owned properties to be alerted by email if the bank-owned home gets listed for sale or if the listing price changes.

Here’s a quick checklist to follow if you are interested in purchasing a pre-foreclosure (NOD, LIS) property.

• 1. Prepare your resources

  Make sure that you have the resources in place to purchase this property. Get pre-qualified for a loan if you haven’t already and enlist the help of a buyer’s agent if you’re not comfortable contacting the owner or listing agent and navigating the negotiations and closing process on your own.

• 2. Confirm property status

  Call the trustee or attorneylisted in the Foreclosure Contact Info section of the property details page on RealtyTrac to confirm that this property is still in pre-foreclosure. Owners in default can stop pre-foreclosure by paying off the amount owed (called reinstatement) or by selling the property.

• 3. Evaluate bargain/investment potential

  Determine if this property represents a good bargain or investment opportunity. If the property is listed for sale, a good place to start is to compare the List Price to the property’s Estimated Market Value. If the list price is lower than the market value, the property could represent a bargain purchase. If the property is not listed for sale, you’ll want to look at the Trends tab to see the average foreclosure discount that foreclosure buyers are getting in the surrounding zip code. That will give you an idea of the type of discount to reasonably expect on this property. You’ll also want to check if the home has any equity by checking the Equity & Loan To Value section – this could help you determine whether or not you want to work directly with the owner or pursue a short sale (which requires lender approval).

• 4. Contact the owner or listing agent

  If the property is listed for sale on the MLS, you or your buyer’s agent can simply contact the listing agent. If the property is not listed, you or your buyer’s agent will need to contact the owner in default to express your interest in the property. Check under Foreclosure Contact Info to find contact information for the owner.

• 5. Negotiate a purchase agreement and close the deal

  If the owner is interested in selling during pre-foreclosure (which is beneficial to the owner’s credit and allows the owner to walk away with something to show for any equity), then you’ll need to negotiate the terms of the purchase, enter escrow and close the deal before the property is scheduled for public foreclosure auction.
  If you are a RealtyTrac member, you can save an auction property and get email alerts that will notify you if the foreclosure status, auction date/time or market status of the property changes.