Are you looking to buy a new home?  If you are, you may be turned off by the real estate prices you see on the market.  If so, this doesn’t mean that now isn’t the time to buy a home, but it does mean that you may be looking in the wrong place.  Instead of visiting the online websites of realtors or flipping through their brochures, place your focus on foreclosure properties.  Foreclosure properties are often considered a great buy, as they are easy to find and affordable.

One of the most popular ways that foreclosures are bought and sold is at an auction.  This auction typically takes place at a county, town, or village government office, such as the clerk’s department.  As for how you can find these foreclosure auctions, they are often advertised in local newspapers.  You can also search local records, as foreclosures are public notice.

One of the few downsides to buying a home at a foreclosure auction is the inspection, as you aren’t typically granted one.  Most bidders are bidding on the home as-is.  As-is isn’t so bad, but it may be if you haven’t seen the property.  With that said, since foreclosures are public notice, you should be able to get the address of the property in question.  You will want to drive by.  Although you should not judge a book by its cover, a drive by can give you an idea of what to expect.  When you have doubts, it may be best to move on and target other auctions.

If you decide to attend a foreclosure auction, the last thing you want to do is just show up. That is unless you are scouting to see how an auction works.  When you are serious about purchasing a foreclosed property at an auction, you need to be prepared.  This preparation involves having financing lined up.  Many will require that you either have the money on hand or show proof that you do have the financial resources needed to follow through with the sale.  Contingency loans are generally prohibited.  Check deposits are sometimes required before you can even place a bid.

As for the auction itself, it depends.  It is not uncommon for bids to be sealed.  Once everyone has placed a bid, the highest bidder will be announced.  For bids that are not sealed, the auctioneer will start with a figure, often around $1,000 or less and the bidding will continue on.  If you are the winner bidder, it is important to know that you may not be able to move into your new home right away.  In fact, it is likely that you will be unable to do so.  Many states give current occupants a redemption period or a grace period.  This is where they can still fight to keep their home.  After this point has passed, you can start the eviction process if the current occupants do not leave voluntarily.

As it was previously stated, you may want to attend a foreclosure auction and just sit on the sidelines.  You should be allowed to do so.  If you are unfamiliar with the buying and selling of real estate, foreclosures, or auctions, you can learn a lot.  This knowledge is important, as many fellow bidders will be investors looking to turn a profit, not buy their first home.

Are you a homeowner who has been receiving multiple phone calls and letters from your mortgage holder?  If so, are you facing foreclosure?  Many homeowners say that they are surprised to be facing foreclosure.  With that said, the telltale signs are often there.  Most reputable financial lenders, including locally owned and operated banks, will do just about anything to keep borrowers in their homes.  Unfortunately, this is an important point that many either do not know or just do not take into consideration.

Many homeowners facing this scenario typically just want to pack up and move , however you should be aware of your rights before vacating the property.  As a reminder, financial lenders want to keep borrowers in their homes, especially those that are only facing temporary financial hardships.  That is just one of the many reasons why you should pick up the phone and schedule a meeting in person with the bank’s chief loan officer.

Before your property enters into foreclosure, homeowners are also encouraged to try and sell their property.  In some states, the process of foreclosing on a home and it acquiring a new owner can take up to 120 days.  This does leave you room to try to find a new buyer.  You may have nothing to lose by placing a for sale sign in your yard or by placing advertisements in your local newspaper.  You may even want to use the assistance of a professional real estate agent.

When trying to sell your home at the last minute, there are some important steps that you must to take.  If you want to sell your home at any costs, remember that you still need enough money to payoff your current mortgage.  For example, if you owe $50,000 on your mortgage, you cannot sell your home for $45,000.  It is also important to take your moving and living expenses into consideration.  Make sure that you walk away with enough money to help you find a new home, even if it only involves renting an apartment.

As it was previously stated, the entire process of foreclosing on a property can take up to 120 days or more in some states.  Instead of moving right away, you can use this time to try and make good on your outstanding mortgage.  Consider selling your valuables or getting a second job.  At the very least, stay in the home and save as much money as you can.  Remember, you need to have access to some money to move and rent a new apartment.

There are also a select number of states who give foreclosed property owners time to essentially reclaim their home.  These laws are referred to as redemption period laws.  If your state has these laws in place, you may not even be required to move right away after your home is sold at a foreclosure auction.  With that said, if you not anticipate being able to re-buy your home or get your mortgage in good standing, you should start making arrangements to leave the property.

As for when you do move, there are a number of important steps you will want to take.  First, remove all of your belongings from the home in a timely matter.  After a set period of time, you may lose ownership of these items due to abandonment.  Losing your home to foreclosure can be a stressful, frustrating, and maddening experience.  No matter how mad or upset you are, no good can come from “trashing,” the property before you leave.  In fact, you may face legal repercussions for doing so.  Be sure to leave with your head held high.

As a reminder, foreclosure laws and the rights that homeowners have vary by state.  Before you pack up and leave your home it is important to review these laws or speak with an expert.