REO Home Auctions: Where You Can Find the Best Property Deals
By Joseph B. Smith

Real estate owned (REO) properties are fast becoming popular among investors who want a chance to earn huge profits without spending too much and homebuyers who want to have a place they can call their own at very minimal amount.

REOs are properties foreclosed by banks due to the failure of homeowners to pay their loan mortgages. You have to be realistic and not expect bank foreclosed properties to be in a perfect shape. They may need a little bit of patch ups here and there. But these properties are sold at very low prices, so you will have more than enough to spend on these cosmetic repairs.

Where Best to Find REO:

If you want to find a selection of foreclosure properties, then consider going to REO home auctions. There you can find bank owned properties that are way below their actual market value. There are some compelling reasons why bank owned properties are sold as much as 50 percent below their fair market value. One is the desire of banks to sell the properties immediately.

The longer foreclosure properties are on the hands of banks, the bigger loss they incur. You see, banks have to pay for the taxes of these properties as well as make sure that they are secure while unoccupied. This means banks have to shell out more money for properties that are considered as nonperforming.

Another reason why properties sold at REO home auctions are cheap is the need for banks to recover their money immediately so that they can use it for other profitable investments.

What More to Expect from REOs:

REOs have clean titles, so you need not worry about hidden liens or other encumbrances. And unlike other foreclosure properties, bank owned houses are ready for occupancy once you win at the auction. There are no previous tenants to evict or illegal squatters to deal with.

Buying bank owned properties can provide you substantial savings. Just make sure that you check carefully the property before closing a deal to make sure that it does not require extensive repairs that may put a hole in your pocket.

Joseph B. Smith has been educating buyers on the finer points of REO home auctions at Foreclosure-Auction.net for over ten years. Contact Joseph B. Smith through Foreclosure-Auction.net if you need help finding information about REO home auctions.

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Buying REO Properties At Foreclosure Auction
By Peter Cronje

Recently I had the opportunity to buy a townhouse at a foreclosure auction. The auction was held in Orlando Florida, hosted by Auction dot com. This was my first time ever purchasing a home at an auction and was quite a learning experience. If you are considering buying a property at a live auction here are a few tips to make sure you do not lose money and make a wise investment.

1. Do your homework first.

There is certain days prior to the auction you can inspect the properties that are up for auction.

Make sure that you take an inspector, ask them to do a quick assessment of the property and cover major risk areas such as roof, plumbing and electrical. You may want to negotiate a reduced fee if the inspection is only limited to major areas.

2. Know your market.

You have to really know if the property you intend to bid on is in demand. If you intend to sell it fast, you have to know what you can sell it for and what your maximum bid price will have to be to ensure your profits.

3. At the day of auction.

You most likely will have to present your driver’s license, a check and a cash or check of usually $2500.

When you bid, make sure you don’t get excited and ratchet the price up too fast. Set on the sideline and see what the action is. If there are one or two bidders he can jump in approaching your maximum bid and many times you will be successful. No guarantees though.

4. If you won the auction.

You can expect to sign a bunch of paperwork that the bank will need to sell the property to you. The final purchase price is determined by your winning bid plus the auction fee which is usually $2500.

5. After the auction.

Get your property ready as fast as possible. If you intend to flip it, post it on Craigslist and get it on the MLS as fast as possible.

6. Financing

If you’re buying cash you can use a partner at funds to close with and split the profits unless you have the cash yourself.

If this is a buy and hold it may be wise to get financing on a fixed rate and sell the property on a lease option. Expect to put at least 20% down.

For more information about making money at Bank REO Auctions, visit [http://www.foreclosureauctionstips.com]. Also receive a free case study about how the author made $19700 in only 2 weeks.

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