A Beginner’s Guide to Real Estate Auctions
According to the experts at RealtyTrac, we could see a record number of foreclosure filings in 2011. So there's a lot of inventory out there. A lot of these foreclosure homes are sold through a real estate auction. In many ways, the process works like any other auction. But there are certain things that make it unique. Here's what you need to know:
Understanding the Lender's Mindset
The biggest benefit of buying a home through an auction is the potential for savings. Lenders want to sell these properties as quickly as possible. They are losing money by having the "non-performing asset" on their books. This is lender-speak for a property that is not producing any mortgage payments. It's just sitting there, costing them money in the form of upkeep and marketing. So they want to offload the property ASAP. And that's where the real estate auction comes into the picture.
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