buy foreclosure property

how to buy property in auction by bank?[foreclosure property]?

whn i was searching about property thn i saw a property.i’m interested in tht property but i dnt knw hw to buy?there options for searching property like auction or possession…can u tell me difference btween them?
i saw a property in which property listing type is possession n debt amount is 20lacs…….so my question is tht hw much total money i hv to pay for that property?
n in auctions property,they shw reserve price is 10lacs….so hw much i hv to pay for tht property?

Just follow the notification.

Irrespective of the debts, there will be a price indicated in the notice “Minimum Upset Price” and below which the property will not be sold. Whoever bids higher over and above the Upset Price will get the deal. You have to pay 10% as EMD before participating and another 15% immediately after knocking the deal. Balance 75 % within 15 days or one month as mentioned in the notification.

Sale notice is different from possession notice. In possession notice, the bank is taking symbolic possession of the mortgaged property and cautioning the public not to deal with the property as it is mortgaged by the party to the Bank.

Ideas When Acquiring A Property By Auction

I get asked the question frequently… what’s the easiest way to purchase a foreclosed house at public sale?. Well I am not an legal professional and the method is different from state to state but I can provide you some common pointers. Let me begin by saying there are actually two varieties of auctions. The primary type is the “court house steps” public sale, this public sale is held before the bank takes the home back. The second type of public sale are those you see advertised on TV, newspapers, etc. With these auctions the bank has already foreclosed on the home. Lets look at both varieties of auction.

The first type of foreclosure public sale is many times referred to as the “court house steps” sale. Now in lots of situations this sale is just not truly held on the court house steps but within the court house building or many times in an attorneys office. However places such as Phoenix, AZ truly do have these auctions outside the court house every week. There are several risks when buying at this type of auction. One is you normally can’t examine the house before hand and two, you might be evicting a tenant or home owner if you’re the profitable bidder. Not a really pleasant process. If no one hits the reserve bid this is when the lender is the winning bidder and actually takes the home back. As soon as this happens they are going to sell the house in one of two ways, either by way of a brokerage/listing agent by way of the MLS or by the use of a second type of auction.

The second type of public sale is the kind you see advertised on TV, newspapers, radio, etc. These houses have already been taken back by the lender as in the instance above. The benefit of acquiring property at this type of public sale is you are not doing any evictions and generally you may examine the property. The biggest down aspect to this is there are normally many bidders on a specific home. Many of those bidders are inexperienced and within the “heat of the second” many of those properties get bid up and bought for greater than they are actually worth. You additionally need to have cash (or hard money lender which is a complete new topic).

The primary thing to remember when buying at either type of public sale is do your homework. Many people go in blindly and buy a property only to realize they didn’t get a good deal. As with anything those who do there “due diligence” and put in the effort are those who get the nice deals. Be aware that this process does involve a fair period of time if you want to be successful. If you cannot commit the time to purchasing property in this style you in all probability shouldn’t.

Ken is a Realtor within the Phoenix region and specializes in Trilogy Power Ranch homes and other Arizona golf communities

buy foreclosure property