Foreclosure questions??

[Ima saver]

There , under the legals in the newspapers, are many listings for home foreclosures. I have never attended a foreclosure, but they are advertising that these homes will be sold the first tuesday in february on the courthouse steps to the highest bidder! Is this legit? They say you have to pay in cash? Who is going to show up with hundreds of thousands of dollars in cash??
What if a house cost the bank $400K in loans? Could the highest bidder get this house for possibly $100K??
It sounds like someone could get a really good deal. What are the risks and downside of these foreclosure auctions?
Has anyone ever attended one of these?

[Aleta]

On our news station we were being warned about buying foreclosures. It's not like you can go in there with an inspector and bargain. These homes are as is. You don't know the property history on it. I would have to almost know about a house before I bought it.

My husband's friend bought one that had permit problems and he is also having a hard time insuring the house. BUYER BEWARE!

[Ima saver]

We have been inside the home and know all about it!

[gamecock43]

yes you can buying it "on the courthouse steps" but you are competing against investors who will be there as well. They are savvy and quick to draw, kind of intimidating to a first timer. But you should go, just for the experience!

[Ima saver]

Do you really have to bring cash?? (good place for a robbery)

[Aleta]

I agree with gamecok that it would be a good experience to go to one of those auctions.

[maat55]

Do you really have to bring cash?? (good place for a robbery)

I'm guessing a cashiers check.

[momof1in150]

I'm guessing a cashiers check.

Yes, you need to bring a cashier's check - usually for about 10K to show you are serious.

[Ima saver]

Thanks, I was wondering how you would know how much to bring, since you did not know how much the bid will be on the house. Do you have the check made out to yourself??

[momof1in150]

It should say in the foreclosure notice in the paper who it should be made out to.

[scfr]

I went to one foreclosure auction just to see what it was like, because there was a house I was interested in that was in pre-foreclosure, and I wanted to get a feel for the auction process as an observer before I would actually be bidding. If there is an auction between now and the one you are interested in, I'd suggest going just to watch and learn. People did bring cashier's checks with them, not greenbacks.

If there is a trustee (probably a lawyer) for the house, they could be a good source of information. You could also contact the courthouse or the auction company for information.

If it's the house I think it is, good luck and I hope you get it.