How To Purchase At A Foreclosure Sale

Learn how to purchase at a foreclosure sale.

Finding Properties That Will Be Sold At Auction

In all foreclosure auctions a notice must be published locally. Your county clerk's office is a great resource for identifying foreclosures, but it can be very time consuming and difficult, especially when you are not sure of what you are doing.

Foreclosure Times.com has the largest database of foreclosure homes in the country. They include Bank REO, Government Services Agency (GSA), Pre-Foreclosure, Government Foreclosures including the Federal Deposit Insurance Corporation (FDIC), HUD, and also the Internal Revenue Service, bankruptcy and by owner properties.

If you want to buy foreclosed properties, you must be prepared!

It is very important to determine the value of the property that you plan to bid on. Don't forget to check the title - a title company will do that for a fee. You will also need to allow for closing costs and remodeling costs, etc.

By going through these steps you will have enough information to formulate what your maximum bid will be. You will also determine whether or not you want to bid on it.

Winning The Bid

If you have the winning bid at the auction, you will get a "Certificate of Purchase." It will allow you to get a determined amount of interest if the property is later redeemed.

When you are issued the certificate, you must pay to for the property with certified funds or cash in the exact amount of your property bid.

Redemption Period

Until you go through a "redemption period" the property is subject to redemption by the owner or by junior creditors.

The current owner has a redemption period that is around 75 days. During that period, they can pay off the "Certificate of Purchase" amount, plus any interest and fees. If the owner wants to keep their property, they have to pay the redemption amount in certified funds or cash to the Public Trustee.

During the owners "redemption period" any junior lienors (a person who holds a lien on another's property or funds) may file their intent to redeem if the owner does not - for a specific time period.

You Take Title

If no one redeems and all of the redemption periods expire, the "Certificate of Purchase" holder can be issued a confirming Public Trustee's Deed. Once that occurs, the title vests free and clear of liens and encumbrances junior to the foreclosed lien except omitted parties, or parties that were not notified of the foreclosure but who have an interest in the property.

The property belongs to you. Hopefully there are no exceptions as mentioned above.

The above information on how to purchase at a foreclosure sale is simply my summary of the process as I understand it.

If after your review of the above described process you are still interested in purchasing, it is advisable that you do more research on the subject. In addition, I suggest you seek a real estate attorney to further your knowledge prior to an actual purchase.

My Interest in How to Purchase at a Foreclosure Sale

Years ago I researched how to purchase at a foreclosure sale. I went so far as to go to a sale at the Bay County courthouse. I found it very interesting as there were only a few people who attended the sale.

There were just two properties that day and within about fifteen minutes both properties were sold. I followed up to see if they had purchased them at a good price and they did.

Hopefully the people who purchased did their homework and made sure that there were no leins on the propety or any other hairs that might bite them in the future. That is my only reservation. My reason for going that day was to experience it.

If I ever do decide to purchase at a foreclosure sale, I will be sure to spend the time and money it takes to Thoroughly research each property of interest!

How To Purchase At A foreclosure Sale - back to top of the page
Back To Panama City Condo Foreclosures - Are They Right For You?
Back To Condominium-Planet Home Page