2. The Foreclosure Auction

Foreclosure Auctions need careful preparation if you plan to bid on properties.

If the borrower or property owner (now called the defendant) does not appear to answer a summons, appear in court or some how address or cure the default in some manner, within a specific time frame, a judge will issue and sign a judgment against the property owner and force a sale. A public notice will be published and the property will be sold at auction.

askforeclosure.net believes that it is better to deal directly with the property owner BEFORE the auction as part of the pre-foreclosure process.

Auctions require careful preparation and cash on hand at the auction. With most properties at auction you will not be able to enter the property beforehand. There will likely be other liens against the property which you will likely be responsible for. The foreclosure auction takes place at the County Courthouse. The highest bid must be at least as high as the lender’s upset price. You must give the referee 10% of the purchase price via cash or cashiers check on the spot. You must then close the deal, with the rest of the money within 30 days or forfeit your down payment. Line up your financing before the auction to avoid the possibility of losing your down payment. (Buying at Auction is not without substantial risks).

If the lender’s upset price is not met then the lender has the right to refuse the highest bid and take the property back. Once the property is taken back by the lender it is generally known as REO if the lender is a lending institution.

You need to know what you are doing.

Auction Schedules for NYC available on our site click here.

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