According to RealtyTrac, there are 3,332 notices of default that have been filed in Milwaukee, WI. There are also 3,203 bank owned REO’s available for purchase. With such a large inventory of foreclosure homes available, investors have been flocking to Milwaukee, WI to take advantage of these bargain prices and purchase a foreclosure property. One of the easiest ways to find the foreclosure auction properties is to check at the county courthouse. Notices of sales are published at the properties as well. REO’s can be found by working with a local Realtor. REO’s are homes that have already gone through the foreclosure process and did not sell at the foreclosure auctions. The banks who foreclosed on the properties buy them back if they do not sell at public foreclosure auctions. Since prices are so cheap at auctions, these homes are in high demand, followed by REO’s and short sales. Short sales also give you an opportunity to buy a property at a discounted price. Short sales have not gone through the foreclosure process and need approval by the seller’s lender since the lender is going to have to write off the difference between the loan balance and the sale proceeds because the seller is upside down on their mortgage.
Milwaukee Foreclosure Auctions
Milwaukee foreclosure auctions offer good quality homes at discounted prices that can be bought cheaply. Before you bid, you will need to obtain the necessary documentation, register, obtain financing or get your cash ready. Make sure you understand all the bidding instructions and rules. There are some risks involved with purchasing foreclosure auction property. You are not able to get title insurance. The new buyer must pay off any liens on the property and pay for eviction costs if there are any former owners or tenants still living at the property. The buyer must do their due diligence and inspections because homes are sold as is without any warranties.
Before you attend the auction, be sure to bring your driver’s license or passport as you will need I.D. Also bring your cashier’s check for bidding and pre-arrange for payment in full in case your bid is selected. Generally a 10% deposit of the purchase price is required to bid. Register when you get there, or if you pre-registered, then check in with the auctioneer. You can ask questions at any time before the bidding starts, but once the bids start, they go fast and there is no time to ask anyone anything. The highest bidder is awarded the property for cash. You are also responsible for paying the auctioneer’s commission if your bid is selected. You will also need to sign the conditions of sale agreement.
Keep in mind that not every property offered at the foreclosure auction is sold at the auction. Many times the lender sets the opening bid and buyers may decide that it is too high and buyers avoid bidding. It is common for the lender to buy the property back and offer it for resale as a REO (bank owned) property. If your bid is selected, consider yourself a lucky buyer because auction properties are sold at deep discounts.
Online Auctions
Online auctions give you the flexibility of bidding on property from your home or office. However, it is always recommended that you look at the property in person or have a friend or family member who lives in the area check it out. If you are unable to go to the property, then you should hire a home inspector to conduct an inspection so at least you have an idea of the condition of the property. Online auctions are quick, easy, and efficient and for serious buyers and investors who want to take advantage of the bargain prices these properties can be acquired for in today’s market.
REO’s
REO’s offer you an opportunity to purchase a discounted property as well. They offer less risk and are popular among first time buyers and new investors because you are able to inspect the properties, you don’t have to worry about liens because the bank has already paid them off and the properties are delivered vacant so there are no costs associated with evicting the former owner or their tenant and you can buy title insurance. The properties are still sold as is so you need to conduct inspections to make sure the property is in good condition and does not need major costly system’s repairs.
Whether you want to purchase an auction property at a public auction or a REO, there is plenty of opportunity to do both or either in the Milwaukee area. Home prices are affordable, inventory is high and interest rates are low.
