Foreclosure Auctions Offer a Great Value
Hello, and welcome to part two of our blog series dedicated to helping our readers learn some insider tips on effectively purchasing foreclosed homes through the auction process. In our last post, we focused mainly on the different stages that a foreclosed home goes through when the homeowner or lender is trying to divest themselves from a property. When listing out these different stages, we touched briefly on foreclosure auction, however, we didn’t delve too deep into why foreclosure auctions, in our opinion, offers potential buyers a great opportunity to acquire a home that they may not have otherwise been able to afford. Today, we are going to go over exactly why we believe foreclosure auctions are the best way to acquire a foreclosed property. Continue reading below if you would like to learn more.
Foreclosure Auctions Give the Buyer More Control
When a home goes through the foreclosure process, many things are happening at once. In reality, foreclosure is one of the last situations that a lender wants to find themselves in. If a foreclosed home has made it all the way to the auction process, it means that the homeowner and lender were unable to unload the property during the pre-foreclosure period. While this is unfortunate for the homeowner and lender, it is not unfortunate for you. While the homeowner and lender have quite a bit of control over the price of the home during the pre-foreclosure period, they have much less control during the foreclosure auction period. Why does this matter? Below, we have listed just a few reasons.
- Less Worry: During the pre-foreclosure period, the homeowner still has control of the property. While they may be late on mortgage payments, it is almost always acceptable during this period for the homeowner to pay off their outstanding debt and retain control of their property. While this is excellent for the homeowner, it is not so great for people who may be scouting the home for purchase. We’ve heard of many instances where a buyer was lined up to purchase a home only to find out that the homeowner somehow managed to pay off their debts and reclaimed their rights to the property.
- Better Price: During the pre-foreclosure process a home’s price is less negotiable. The lender and homeowner are doing their best to get as much money as they can out of the home in order to cover any outstanding debts. During the foreclosure auction process, however, lenders become less involved. At this point, the lender is just trying to recoup some of the value that they have put into the home, meaning that potential buyers have a better chance of getting a property for less money than the market value would demand. While there are some inherent risks to purchasing a property at auction, such as not being able to inspect the interior of the home before purchase, foreclosure auctions typically offer the best opportunity to purchase a property well under the market value price.
While there are many other reasons that we feel foreclosure auctions are the best method to purchasing a foreclosed home, the above two are, from our experience, the most important. If you are ready to jump into the world of foreclosure auctions, please do not hesitate to contact us. At Investors at Auction, we have been helping people just like you find great deals in the foreclosure auction market. Contact us today to learn more!