Smart buyers can buy discounted Des Moines, Iowa at property auctions. Iowa foreclosures are conducted by judicial foreclosure. There are no redemption laws so if you buy foreclosed homes at foreclosure auctions, you don’t have to worry about the former owner having the ability to redeem the home after the sale and losing your money. To find out about property auctions in the Des Moines area, check the local newspaper in the county where the property that you want to buy is located for sale dates and times. You can also find auctions on Internet websites including government auctions.
As Is Sales
All foreclosed houses that are sold at auctions are sold in an “as is” condition. If possible, you should at least drive by the property to make sure it is vacant. Otherwise, if you are the successful bidder, you will have to evict any former owners or renters. Foreclosed houses bought at property auctions are difficult to get title insurance on also.
Decide Ahead of Time Property Plans
It’s a good idea to decide ahead of time the purpose of buying the property. Are you going to rent it, rehab, flip it or live in it? Also decide how you are going to pay for the home. Most foreclosure auctions require a cash payment.
Bidding Process
If you have never been to an auction before, you should arrive early. It is also a good idea to take someone with you that is experienced at bidding at foreclosure properties. Foreclosure sales are conducted by an auctioneer who will ask for a minimum bid payable by cashier’s check or cash. The minimum bid is usually 10% of the purchase price. The highest bidder is awarded the property. You must pay for the property at the end of the auction. The bidding goes fast, and the process can be confusing. Don’t get caught up in the excitement of bidding. Stay within your budget. Many of the properties need repairs, some major ones. There may also be some that are in move in condition. It used to be that only properties that were in poor condition were in foreclosure, but now you can find luxury move in condition and brand new homes as well.
Disadvantages
- You will receive the property subject to any former owners or tenants that may be residing there.
- No title insurance is available.
- Since the loan balance is always more than the current value of the property, a small number of properties are sold at foreclosure sales. However, you may luck out and get a good deal so it’s worth the effort.
If the property is not sold, then the property is bought back by the bank and it becomes bank-owned REO (real estate owned) property. REO’s are listed with Realtor and are also good deals. Auction properties do not generally involve Realtors. With so many great opportunities in the Des Moines area to buy foreclosures, you should take the time to investigate property foreclosure auctions.
