You can save tens of thousand of dollars if you buy a property in Baltimore, Maryland at a foreclosure auction. The steps are simple when it comes to buying a home through a foreclosure auction. But first, it is important that you understand the process.
Sign Up
Banks, government agencies, and public organizations use foreclosure auctions as a way of quickly disposing the non-performing assets and to gain the needed liquidity. They usually have auction alerts where you can sign up. If there are pending foreclosure auctions in your area, then you will be notified.
Explore
Before you participate in a foreclosure auction, try to observe how the process takes place so you can explore on the outcomes. The auction may be live, online, or via sealed bid; the important thing is to learn how it works. The live auctions may add ten percent or more as bidders' fees to the final price. Government foreclosure auctions are based upon the 'net'. It is the profit that might be different than the highest bid.
Get Pre-Qualified
In order to bid on a property, most of the foreclosure auctions would require escrow payments. They may also require the final payment to be due in full within thirty days. There are also foreclosure auctions such as those conducted by government underwriters that offer financing programs. However, you can get big discounts and a streamlined processing if you pay in cash. Whatever your choice, it is best to get pre-qualified to have the financing in the right place.
More research
You should be aware that most of the foreclosure auctions offer the property in “as-is” condition. This means that all the repairs, liens, and back taxes owed would be your responsibility. So it pays to research on the property you plan on acquiring. One of the important things you should do is to have a full inspection performed. If you are really interested on a certain property, then learn as much as you can about it so you can also determine what type of bid to place on the property. A home's hidden defects like the HVAC system issues can cost you a lot for the repairs. Having this kind of problem can reduce the profit potential of the property bought at a foreclosure auction.
Acquire Certified Funds
Proofs of certified funds are needed if you intend to bid on a live foreclosure auction. Sealed bid auctions may obligate an application and an application fee. So to obtain the information about the property, be sure to contact a listed broker, or other registered agent. Don't forget to request copies of the relevant information such as homeowners' association reports, and initial inspection reports before the closing date.
Bid
But before you do, you have to make sure that you are qualified and that you understand the terms.
Foreclosure auctions in Baltimore can save more than just cash. If you bid well and make the right decisions on investing on a property, it may pay off well in the near future if you decide to sell it. The work you put into the property can dramatically increase its profit potential. Buying and selling properties from foreclosure auctions in Baltimore can be a very lucrative business for you.
