If you are interested in purchasing Ann Arbor, MI foreclosed houses at public foreclosure property auctions, you should know the procedures before you attempt to bid at the auction. The foreclosure auction is a public sale that occurs at the courthouse in the county where the property is located between the hours of 9:00 a.m. and 4:00 p.m. Generally the sheriff or deputy conducts the sale. The property is awarded to the highest bidder for cash. The buyer receives a “sheriff’s deed for the property. The deed should be recorded within 20 days from the date of the sale. The property can be redeemed by the previous owner within 6 months after the sale. If the property is redeemed, the previous owner must pay you the sale price plus any interest and fees.
Other Things You Should Know
- Foreclosed houses purchased at foreclosure auctions are in high demand because they are sold at below market prices so you know you are getting a property with built in equity.
- You must pay cash for them.
- Also, you need to budget for repairs because most foreclosure auction properties are in bad condition.
- Former owners strip them of appliances and anything that is valuable, including kitchen countertops and cabinets, bathroom vanities, hardware and you can expect holes in walls and other damage. So it is important to purchase the property for the right price. Do your due diligence and check on similar sold properties in the area.
- The properties are always sold in an “as is” condition. You may not be able to inspect them so be prepared to replace the home systems just in case.
- Repossessed homes sold at foreclosure property auctions may have liens on them which the new buyer is responsible for paying off.
- You have to evict any former owners or tenants living at the property.
- You cannot purchase title insurance.
- Also, the former owner can redeem the property within six months after the sale by paying you the sales price, plus interest and other fees so you may not be able to keep the property.
REO’s
REO’s are foreclosed properties that are not sold at foreclosure property auctions. They are bank owned and are also good investments because they are sold at discounted prices, but offer less risk because the bank has already paid off the liens so the title is marketable and transferable. You can get title insurance and conduct inspections, and you can arrange for your own financing. You must purchase REO’s through a local Realtor because the banks list their REO’s with local Realtors.
