- 1). Locate homes facing a foreclosure auction by contacting the county recorder's office. Read the legal section of local newspapers. Notices of default are listed with the recorder's office and published in the newspaper several weeks prior to the auction. Lending institutions such as banks may list homes facing foreclosure on their websites.
- 2). Research the homes as much as possible. Run a search at the recorder's office to determine if other liens such as Internal Revenue Service liens are attached to the property. Contact the tax collector to determine if the property taxes are paid. Obtain a parcel map of the property from the assessor's office. Unfortunately, tenants may still be living in the home and home inspections usually aren't possible. Obtain the selling price of similar non-foreclosure houses to get an estimate of the house value.
- 3). Participate in the foreclosure auction and be the highest bidder. The auctioneer offers the house for sale and begins the bidding. The last and highest bidder purchases the house. Many auctions require the successful bidder to pay for the house immediately or within 24 hours. Research the required methods of payment such as a cashier's check or cash and bring the necessary check or cash to the auction.
- 4). Contact lending institutions and real estate agencies to find out the dates of any home auctions. Once the lender takes possession, the house may be sold by a realtor or at an auction. It is called a real-estate-owned or REO property. Look for auction signs posted in front of the house and information listed on the auction company's website. House inspections are usually available prior to the auction, and often no additional liens are connected to the property. It is possible to arrange financing prior to the auction. Attend the auction and place the highest bid.
- 5). Contact the county tax department to find properties listed for sale for unpaid taxes. Counties may conduct live oral auctions, online auctions or sealed bid auctions to dispose of property with unpaid property tax bills. The minimum bid is the amount of the unpaid taxes plus fees. Often, properties with homes are redeemed by the owners prior to the auction. Many tax lien auctions primarily sell bare land. Carefully follow the auction instructions to place a bid.
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