Resumed for lack of payment, auction real estate has never been so offered on the internet as it is now. Far below market value, they are an alternative for those in no hurry to own their own home and are willing to take some care.
Based on some research, in US the number of last year’s properties repossessed by default was increased by 81% in one year. The bank resumed 8,775 properties in 2015 and 15,881 properties in 2016, according to the latest data released. In the United States, the crisis is an opportunity for consumers and for the market to modernize and give buyers more security. However, it is not by chance that the prices of the auctioned properties are lower. You have to be willing to take some risks and take some care to make the purchase successful. Here are some tips to get a real estate auctioned without breaking the bank:
1 – Do not hurry
The biggest risk of an auction is the time it may take you to enter the property auctions. This is because many properties that go to auction have not yet been vacated by their former owners. When you cast off at an auction, you get a foreclosure letter asking you to quit, which can take more than a year. You run the risk of having to fight in court for the former resident to leave the property. Therefore, participating in an auction of real estate is only indicated for those who have the patience to wait. Auction is for the same profile of who buys a property in the plant and can wait for the delivery deadline. It is not for anyone who wants to exchange the rent for the benefit immediately.
2 – Prefer vacant properties
Remember that if you have to file an action to evict the resident, there is an additional cost. The bank may prefer to pass this process of vacating the unit to the new owner and thus avoid expenses with late condo fees and the lawsuit itself. From the sale of the property, condominium fees and arrears are the responsibility of the buyer. Also, if the property is busy, it is likely that you will not be able to visit it before closing the deal. So it is best if you can take out a property that has already been vacated.
3 – Read the notice carefully
In the public notice, the main information about the auctioned property is the date of the auction, the minimum sale value, the state of conservation of the property, who the seller is, and who are responsible for each of the surplus costs, such as taxes and condo fees.
4 – Have legal advice
A property may go to auction for late payment of the financing, when it becomes property of the bank, or through judicial, and for actions due to non-payment of condominium fees. It is important to consult a lawyer who helps to raise the debts of the current resident. You may have to bear the debts left by it.
5 – Do price research
It is important to research the market value of the property to assess whether the discount offered at the auction outweighs the risk of having to shoulder justice and retirement costs. In addition, it is also essential to set a maximum bid, so you do not incur more debt than you can.
