How Do I Pay for a Home Purchased at a Foreclosure Auction?
September 24th, 2009
Foreclosure auctions are a great way to pick up a home at a below market price, whether you are looking for a primary residence or an investment property. One thing that restricts the number of bidders at a foreclosure auction is that you have to be ready and able to put down a significant portion of money at the end of the auction if you are the winner. This may range from five to twenty percent of the total sale price of the home and must be paid in certified funds.
The easiest way to make the payment is to have a certified check from your bank that you can use to pay the percentage due at the end of the auction. The balance of the payment has to be arranged within a set period of time, usually thirty days. This allows you to borrow money or set up a mortgage with you lender if you need to. This may seem like a lot of money required up front for the purchase, but remember why the home is being sold. The foreclosure auction is taking place because the bank made a bad loan. The foreclosure process is expensive for the lender and the last thing they want is for someone else to default on a payment on the same process.
So the bar is set high to ensure that the sale will go through and the lender will be able to cut their losses and get money out of the property without any further problems.
- Cleveland Has Been the Epicentre of Foreclosures
- The Sin City of Las Vegas Is Now Becoming the Foreclosure City of Tents
- Afro-Americans Are Suffering the Most for this Foreclosure Crisis
- Congressional Panel Is Worried About Misuse of Funds Meant for Foreclosure Prevention
- Increase in Foreclosure Activity is Leading to More Homelessness
- Washington State Will be Getting Help to Tackle the Forclosure Menace
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