- 1). Try to purchase the house from your neighbor before it officially goes into foreclosure. While this may not be an option, it increases the chances of getting the house. If your neighbor cannot afford to keep the house, selling it to you could help him save his credit and get out from under the burden of the mortgage.
- 2). Research to find out when the foreclosure auction will take place if you were unable to purchase the home before foreclosure. Many lenders will try to sell a house at auction after foreclosing on a property. If you plan on trying to buy a house at auction, you need to come up with the money in advance. This can be done by using savings, taking out a home-equity loan or or other loan.
- 3). Bid on the property at the foreclosure auction. Before the auction starts, you must register with the auctioneer. At some options, you must bring a cashiers check for a certain amount of money to prove that you are serious about buying the house. If the auction does not go up past the maximum amount that you can spend, purchase the property and then arrange the payment transaction with the auctioneer.
- 4). Purchase the home directly from the bank. If the auction does not bring in a buyer, the bank takes possession of the house and sells it through normal channels. In this case, you make an offer directly to the bank and then purchase the house. Some banks skip the auction step and simply sell the house this way to begin with. This is often the safest method as the bank takes care of any liens or encumbrances against the property before selling it.
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