Foreclosure Clubhouse

Is there a future in foreclosure investment?

The foreclosure market was once seen as a small niche market where purchasers willing to take a risk could pick up a bargain property in need of major refurbishment. New buyers with plenty of energy could get much more house for their money and investors had a source of cash generating real-estate. In 2005, over 800,000 properties entered foreclosure and the figures have been rising steadily for a number of years.

It’s the economy, stupid

The economic climate in the states with a contracting manufacturing industry and two decades’ worth of home-ownership initiatives has placed so many people in a vulnerable position. There only seems to be potential for even more foreclosures in the coming years. This is bad news for homeowners close to the edge but good news for the armies of purchasers and investors who are now using the internet to track down their bargains.

The Internet

Googling the words “foreclosure listings” brings up a mere 12,400,000 web pages which indicates that there is a phenomenal amount of information out there. Details of foreclosures are no longer a matter of local interest; they are open to the world.

Auctions

Legends telling of $100 purchases turned into $50,000 sales in a matter of days have fuelled a Klondike style gold rush however the reality is starkly different. Foreclosure properties are generally sold at auction and inexperienced bidders can become too emotionally involved in the property. They find themselves bidding close to the market value so frequently that foreclosure properties are sold, on average, at 5% discount rather than the much mooted 50%.

Pre-foreclosure buying

Of course there are still real bargains to be found but, as with most things, they come at the expense of thorough and mind-numbing research coated with a thick layer of persistence. These qualities are generally not present in the get-rich quick brigade and so, professional property investors will still reap the rewards. Because of the frenzy of the auction floor, many serious foreclosure investors are avoiding this arena. They are choosing instead to pursue a version called pre-foreclosure purchasing. This involves tracking down properties that are just entering the foreclosure process, assessing the risks associated with the legalistic liens and encumbrances on the title and approaching the owner with a view to relieving them of their financial handcuffs. This approach requires a great deal more knowledge, skill and subtlety than bidding at an auction, so it will continue to be the province of the rich, the clever and the bold.

Buying direct from the lender

Knowledge of the entire process also allows the quick-footed to deal directly with the lender who has brought the foreclosure prosecution. They know that holding a chunk of timber, bricks and mortar is not what banks and loan companies really want to do. They would much rather have cash moving through the veins of the company. Negotiations like these need careful timing to ensure that the lender is amenable to the approach and is willing to break through the processes he has carefully put in place.

The future

There is no doubt that the foreclosure market will continue to grow. The reserve of properties destined for sale in this way is still depressingly large. The rumors that foreclosures can be a source of easy money are spreading far and wide thanks to the internet and greed is a commodity that is never in short supply.

What special conditions do VA foreclosures have?

The Department of Veteran Affairs (VA) deals almost exclusively with ex-military personnel and acts as a guarantor on mortgages organized through third part lending agencies. In the event that a property owner defaults on their mortgage payments so badly that the lender prosecutes a foreclosure, the VA will acquire the property from the lender, closing the mortgage and will attempt to recoup its costs through auctioning the foreclosed property.

The Foreclosure Process

A grace period will be given to defaulting mortgagors in an attempt to motivate them to make the loan current. This can be a period of 4 to 6 months depending on the circumstances. If the situation is unchanged after this time the lender will serve a notice to foreclose. This process can take a further 2 to 4 months to complete, meaning that a property can be in limbo for the best part of a year.

Foreclosed properties appear on paper to be a great deal but buyers should always be aware that, because they have been neglected for a period of time, a certain amount of repair and renovation work may be necessary to bring the property up to its proper market value.

VA Auctions

You can bid on a VA auction through a network of real estate brokers spread throughout the country in every state. A down payment of earnest money ranging from $100 to 5% of the purchase price must be lodged, along with the completed paperwork, at the realtor’s office. Your bid will then be submitted, usually electronically but sometimes by fax to the VA auction. There is a period of 12 days during which bids are placed. All bids are deemed to be submitted simultaneously, so there is no benefit given to early bids and no penalty for bids made late in the period. At the end of the auction the referee will decide if the highest bid meets the requirements of VA and will contact the realtor. As is the case with most government auctions, purchasers intending to become owner-occupiers will be given priority over other bidders.

Conditions of Payment

If you are a vet yourself you can take advantage of a VA loan to meet the total cost of the purchase. Otherwise you can pay using your own capital or any other financing arrangement.

If you find yourself in a position where you are unable to complete the sale, contact VA immediately. Depending on the circumstances you may have the total deposit refunded. If you fail to contact VA and fail to complete the purchase within the timeframe detailed on the contract you will most probably forfeit all of the deposit.

In general, buying a VA foreclosure is no different from any other foreclosure transaction. The inside of the house may have been converted substantially to cater for a disabled resident which may cause extra refurbishment work to reconvert to a standard format but the previous owner will have been no different from any other financially troubled citizen. Otherwise VA foreclosures represent some of the best value in real estate available to those willing to try.

Are Fanny Mae foreclosures a good buy?

The Federal National Mortgage Association (FNMA or “Fannie Mae”) was established in 1968 to assist low- moderate- and middle-income families to buy homes of their own. They do this by working with financial institutions to construct special mortgage products that will be affordable to people with lower incomes. In the event that a homeowner, who entered the housing market via a Fannie Mae initiative, defaults on their repayments and the situation deteriorates to foreclosure, Fannie Mae will buy the title from the lender and resell it through auction.

Fannie Mae is a New York Stock Exchange listed company and is the largest financial services company in the world outside of the banking industry. Its job is to oil the machinery of the mortgage market to prevent it from stalling.

Fannie Mae Listings

The FMIA website provides access to brief details of foreclosure opportunities across the country. For more information you can either ask a real estate agent to conduct a search under the Real Estate Owned (REO) Identification Number for the property or, if you want to dispense with the agent’s fees, you can conduct the research yourself. All foreclosures are a matter of Public Record and a search at the local County Records Office should uncover the information you need to know.

Foreclosed Properties

Because of the financial predicament of the previous owner, a foreclosed property may be neglected or damaged. This means that the selling price will be below its market value and, depending on the degree of dilapidation, discounts of 30%, 40% or even 50% are possible. The grapevine often talks about $100 bargains that can be turned round in a matter of weeks for $50,000. There may have been situations where this was the case but, these days, most properties sell for closer to their market value.

Fannie Mae will carry out repairs in order to make the property secure, wind and weatherproof but this work is not guaranteed and may have to be redone by the new owner. Properties are sold in “as is” condition, basically what you see is what you get and so your bid needs to reflect the cost of repairs that you will undertake to return the property to its market value. These costs cannot be recouped from Fannie Mae.

Fannie Mae Auctions

To participate in a Fannie Mae auction you will need to make a down payment of around 5% of the purchase price. The auctions are conducted through a real estate agent and all bids must be received by a due date. After that date the referee will scrutinize all bids and sells the property to the highest bidder. If an acceptable offer is not made, Fannie Mae will make a counter bid to force the bidding into the acceptable zone.

Buying and REO or foreclosure property through Fannie Mae is lower risk than other forms of auction as the title is normally cleared of all liens and the new owner need not worry about third parties pursuing him or her for defaulted loan payments or back property taxes.

What are the alternatives to using a real estate broker for foreclosure purchase?

Real estate brokers play an important role in house-buying. They simplify the buying process for purchasers and sellers by collecting a selection of properties, advertising them for sale, marketing them and steering the buyers and sellers through the legal process of exchanging title and financing. However, in the case of foreclosures, there are some situations where the additional fees charged by a real estate broker are an unnecessary cost.

Foreclosure properties

Many first time buyers and seasoned property investors are discovering that there is better value to be found in the foreclosure market. Foreclosure properties are the result of the previous owner defaulting on their mortgage repayments. They are given a grace period during which they should make the loan current by bringing the repayments up-to-date otherwise the lender will prosecute them to foreclose the deal and seize the property.

Foreclosed properties can vary considerably in condition. Some are still in good condition and will attract near their market value, others will be in a “distressed” state through neglect, intentional damage and may have been left vacant, making them a target for vandalism.

If foreclosure is completed the lender will normally auction off the property to the highest bidder.

Buying a property pre-foreclosure

Real estate brokers rarely get involved in foreclosures until the time of the auction. However this neglects a prime purchasing opportunity where a foreclosure buyer can gain advantage. The property owner is normally at liberty to sell the property at any time prior to the completion of foreclosure. This mechanism should allow him or her to clear their debt and avoid damaging their credit record; however few are motivated to take this step.

There are risks attached to purchasing a pre-foreclosure especially if there are liens and other encumbrances on the title. Simply put, the owner may be financed to the hilt, using the property as security and a number of agencies may have a claim on the title or part of it. These parties need to be satisfied before the title can be termed “unclouded” and any new owner will inherit these liens.

Purchasers intending to buy pre-foreclosures must conduct their own research and need to make the approach to the owner themselves as it can be a sensitive negotiation.

Foreclosure auctions

Although some auctions are structured to involve real estate brokers, there are plenty where a buyer can basically turn up with a cashiers check and start bidding. The US Department of Housing and Urban Development (HUD) and the Department of Veteran Affairs (VA) operate an electronic system where bidders can participate from anywhere in the country. They bid by way of a sealed bidding system operated through a network of real estate agents who also hold “earnest money” provided by the bidder and help winning buyers to complete the sales contract.

Although a substantial number of foreclosures are sold by this method, there are still many foreclosure auctions to be found every week on the County Court steps. Where a local owner has had a foreclosure judgment held against them, the court will order the auction to be conducted. Potential buyers only need a money order, a cashier’s check or a bank draft to the value of 10% of their maximum bid to participate. If they win the auction they may have 30 days to organize finance, however some auctions demand immediate payment in full.

REO properties and buying from the lender

In the banking industry foreclosures are termed Real Estate Owned (REO). If the foreclosure is the result of defaulting on a bank loan and the property does not sell at auction, the title will revert to the lender. Potential purchasers can approach the lender to make an offer without the intervention of a real estate broker and can often negotiate, not only a good price for the property but they may even receive finance from the lender at preferential rates in order to smooth the course of the transaction.

Engaging a real estate broker for the majority of foreclosure purchases will incur extra cost for no real benefit as you must involve yourself in substantial research to ensure that you make a sound investment.

What are the alternatives to using a real estate broker for foreclosure purchase?

Real estate brokers play an important role in house-buying. They simplify the buying process for purchasers and sellers by collecting a selection of properties, advertising them for sale, marketing them and steering the buyers and sellers through the legal process of exchanging title and financing. However, in the case of foreclosures, there are some situations where the additional fees charged by a real estate broker are an unnecessary cost.

Foreclosure properties

Many first time buyers and seasoned property investors are discovering that there is better value to be found in the foreclosure market. Foreclosure properties are the result of the previous owner defaulting on their mortgage repayments. They are given a grace period during which they should make the loan current by bringing the repayments up-to-date otherwise the lender will prosecute them to foreclose the deal and seize the property.

Foreclosed properties can vary considerably in condition. Some are still in good condition and will attract near their market value, others will be in a “distressed” state through neglect, intentional damage and may have been left vacant, making them a target for vandalism.

If foreclosure is completed the lender will normally auction off the property to the highest bidder.

Buying a property pre-foreclosure

Real estate brokers rarely get involved in foreclosures until the time of the auction. However this neglects a prime purchasing opportunity where a foreclosure buyer can gain advantage. The property owner is normally at liberty to sell the property at any time prior to the completion of foreclosure. This mechanism should allow him or her to clear their debt and avoid damaging their credit record; however few are motivated to take this step.

There are risks attached to purchasing a pre-foreclosure especially if there are liens and other encumbrances on the title. Simply put, the owner may be financed to the hilt, using the property as security and a number of agencies may have a claim on the title or part of it. These parties need to be satisfied before the title can be termed “unclouded” and any new owner will inherit these liens.

Purchasers intending to buy pre-foreclosures must conduct their own research and need to make the approach to the owner themselves as it can be a sensitive negotiation.

Foreclosure auctions

Although some auctions are structured to involve real estate brokers, there are plenty where a buyer can basically turn up with a cashiers check and start bidding. The US Department of Housing and Urban Development (HUD) and the Department of Veteran Affairs (VA) operate an electronic system where bidders can participate from anywhere in the country. They bid by way of a sealed bidding system operated through a network of real estate agents who also hold “earnest money” provided by the bidder and help winning buyers to complete the sales contract.

Although a substantial number of foreclosures are sold by this method, there are still many foreclosure auctions to be found every week on the County Court steps. Where a local owner has had a foreclosure judgment held against them, the court will order the auction to be conducted. Potential buyers only need a money order, a cashier’s check or a bank draft to the value of 10% of their maximum bid to participate. If they win the auction they may have 30 days to organize finance, however some auctions demand immediate payment in full.

REO properties and buying from the lender

In the banking industry foreclosures are termed Real Estate Owned (REO). If the foreclosure is the result of defaulting on a bank loan and the property does not sell at auction, the title will revert to the lender. Potential purchasers can approach the lender to make an offer without the intervention of a real estate broker and can often negotiate, not only a good price for the property but they may even receive finance from the lender at preferential rates in order to smooth the course of the transaction.

Engaging a real estate broker for the majority of foreclosure purchases will incur extra cost for no real benefit as you must involve yourself in substantial research to ensure that you make a sound investment.

Is prequalification necessary to purchase a foreclosure?

Foreclosure auctions take many forms and range from old-fashioned hammer banging on the courtroom steps to electronic sealed-bid auctions. What they all share in common is a desire to avoid time-wasters. If you are serious about bidding on a foreclosure property your financial preparations need to be scrupulous.

County Court Auctions

When a foreclosure is filed in the County Court and a judgment is made, the court will order a public auction of the property. The auction will be carried out by a nominated referee who is normally a court-appointed attorney. The auctions really do take place on the courtroom steps or at a pre-specified location.

To participate in the auction you will need to show the referee that you are sincere about paying. This means that you will need, on your person, a Money Order, a Certified Check or a Bank Check to the value of 10% of your maximum bid which you will use as your down payment. It is advisable to have incremental checks available as you may win the property for a lower figure and the balance is better in your bank account than in the attorney’s account. You could wait up to a week to get your change back.

In such a public arena you will have to be careful that, in declaring your bid value to the referee, you don’t give your competitors an insight into your bidding strategy.

After the auction you will have thirty days to settle the full amount for the property. This is a realistic timescale to organize financing however it would be prudent to have a mortgage or loan pre-qualified with a lender so that you can just have the paperwork rubber-stamped. You don’t want any delay as you risk losing your deposit.

HUD and VA Auctions

The US Department of Housing and Urban Development (HUD), the Department of Veteran Affairs (VA), the Federal National Mortgage Association (Fannie Mae) and many more governmental agencies sweep up foreclosure properties across the country which have been tied into their mortgage guaranty schemes. These foreclosures are advertised on the internet and are auctioned electronically though a nationwide network of registered real-estate brokers.

In order to bid on a property you will need to place “earnest money” with the broker. This varies from case to case but can be $500 or $1000 depending on the value of the property. A HUD auction is conducted over a ten day period and all bids are classified as being made simultaneously. When you are successful in winning a property you will complete a contract package with the broker which must include a pre-qualification letter from a lender.

The settlement date can be a lot more relaxed than other types of auction; anything up to 60 days. So you have plenty of time to organize your finances but a little preparation will give you time to shop around for the best deals. Seeking a loan of this magnitude at short notice can be a stressful activity and mistakes are often made when there is too much haste.

How to find the true market value of a foreclosure

Your bid for a foreclosure property has to consider so many variables including an accurate market value. Get it right and you’ll realize a good profit if your intention is to resell. If you’re not looking at it as an investment but as a home, you’ll want to maximize your available capital for repair and renovation work. If you get the math wrong you may end up in debt yourself or you’ll have to live with the leaking roof and the dangerous electrics.

Considerations in foreclosure buying

By their very nature foreclosure properties are likely to need repair and remodeling before they can be lived in properly or resold. They got that way because the previous owner found themselves into a financial hole. Rather than put money into maintaining their home their minds were on survival and life beyond the foreclosure.

Refurbishment

The sum of money necessary to cover this refurbishment work is not easy to estimate. Often you will not have access to the building prior to the auction to carry out a detailed assessment; so much of it could be guesswork or an experienced ball-park figure. There is sometimes a detailed Property Condition Report which can be accessed through sellers like the US Department of Housing and Urban Development (HUD). This provides a pro-forma check of the various services in the house and general descriptions of the condition of decor and the mechanical structure of the house.

The Market Value

The housing market is an ever shifting landscape. It is influenced by so much wire-pulling; the national and local economy, local developments, highway building, railroad and aircraft noise, fashion and crime, that it takes experts studying these factors permanently to arrive at a figure that can be used to position a particular property on the scale.

Well established auction organizers will provide a market valuation in the details of the property to allow you to compare their guide price. You can choose to accept this figure for your calculations but be advised that the figure may have been calculated months previously and the local market may have shifted in the meantime. In addition, if you are using the foreclosure property as an investment opportunity, you’ll be more interested in the predicted market value two or three months from now.

There are many online valuation sites, some free, designed to suck potential sellers onto the books of a realtor. They can be useful to obtain a ball-park figure but are almost certain to be out of date as soon as the information is keyed into the database.

This is not the province of the novice; you really need the help of a reliable professional. If you are new to the foreclosure market, it will pay you to strike up a relationship with a local real-estate agent. Their experience of the local conditions will pay dividends.

Profit

The final piece of the jigsaw is the expected profit that you can tolerate. Tolerate is the correct word because projects like this can eat into your profit margin unless they are strictly project managed. Decide on the minimum return that you would accept and then set yourself a realistic upper limit. This upper limit should be your target and you should feed this into your bid calculation.

Auctions are hot-beds of emotion and it is more common these days for foreclosure properties to sell for only a few percent below the market value unless they are truly dilapidated. Calculating a realistic bid price based on an accurate market valuation should prevent your heart from ruling your head.

Are there benefits in buying a pre-foreclosure home?

Buying a pre-foreclosure home is so different from the process used to buy a property that has been foreclosed; it’s like chalk and cheese. There are risks associated with intervening before the property has been seized by the lender but these can be minimized and the benefits could possibly outweigh any drawbacks.

What is pre-foreclosure purchasing?

For a variety of reasons a certain number of homeowners will begin to default on their mortgage repayments each year. They may have been made redundant, they may have become ill or their may be domestic problems like divorce or death in the family that have caused financial problems. In these circumstances the lender will give the borrower some leeway to remedy the situation. If they fail to make the account current, the lender will then begin foreclosure proceedings against the borrower. Even at this stage the owner will still have two or three months to pay off the amount in default and reinstate the property.

A proportion of defaulting borrowers will still fail to remedy the situation and they will allow the foreclosure process to continue through to completion. However there is nothing to prevent them from selling the property during this time and to use the proceedings from the sale to settle their outstanding debts. It just seems that they believe that this is not a possible outcome and few actually make the decision themselves.

It is more likely that a shrewd investor who has been scanning the legal notices will have picked up the trail of a potential bargain. Rudimentary research will allow this investor to discover just how much cash is necessary to release the owner from their self-made prison. They will have checked the title to find out how many liens and other encumbrances it has. They will also have checked the market value of the property as well as actual selling prices for similar homes in the same area.

Armed with this information, the investor will introduce himself or herself to the home owner and will attempt to persuade them of the benefits of pre-foreclosure selling. Many owners facing foreclosure just don’t want to know, so deep is their depression. Others may be drug addicts or alcoholics who little realize what is happening to them; the negotiation is rarely an easy one.

The Benefits

Far from being a predatory activity, pre-foreclosure buying has benefits for all parties involved. The home-owner is effectively released from their debts and will usually end up with a pocketful of money to help them start a new life. Their credit score is also protected from the significant blow that foreclosure can bring.

The lending organization doesn’t take any delight in the foreclosure processes. They would much rather have clients who pay, on the nose, every month. A pre-foreclosure sale will bring the account current and will halt the foreclosure process in its tracks.

Finally the investor, if he or she has been diligent, will satisfy the owner by negotiating a deal where he takes over the title and the liens in return for a payment equivalent to the owner’s equity or less, depending on the burden that the investor has to carry. In some cases they agree to call it quits if there are also delinquent property taxes to pay.

The property does not stand empty for months while the foreclosure auction is carried out and the investor takes over a property which is minimally “distressed”. With a small investment in repair and redecoration, the property can be on the market in a matter of weeks.

What to do if you can’t view a foreclosure

Inspecting a foreclosed property firsthand is as important as inspecting any potential home purchase. Only by verifying what you are being told in the details can you make a sensible decision whether to buy or not. However it is quite common to prevent an internal inspection of the property until the title has been transferred.

Foreclosed Properties

The current economic climate is causing foreclosures to escalate in the United States. The big manufacturing industries are contracting, meaning that there are mass redundancies in certain states. This change of financial status is causing many homeowners to default on their mortgage payments which will inevitably lead to the houses being seized by the lender through the foreclosure process. The properties are subsequently resold, usually through auction.

The common response to foreclosure actions is that the homeowner becomes less interested in keeping the building in a well maintained state and more focused on survival and preserving funds for the post-foreclosure period of their lives. The condition of a foreclosed property can vary from decaying decor to major structural damage.

As a result, the properties are sold in an “as is” or “buyer beware” condition meaning that no guarantees are given that the house will be insurable and no repairs are included in the selling price.

Background Research

Foreclosure buying always entails more research than you would expect to conduct in a house-buying situation. Most of the financial risk when buying a foreclosure is associated with the title. Often the financially stressed previous owner used the property as security against multiple loans and there may even be defaulted property taxes due to the IRS. In some auction transactions only the principal lien, the first mortgage needs to be dealt with; all subordinate or junior liens on the title are cancelled but this varies from agency to agency and from bank to bank.

Your research also needs to look at the assessed values of similar properties in the same neighborhood and actual recent sales prices to allow you to make an educated judgment of the foreclosed property’s value.

Repair and Remodeling

On occasion the details produced will give a very good description of the “distress” that exists within the property and will provide a reasonable guide as to the scale of repair and remodeling work necessary to bring the building back to its full market value. The US Department of Housing and Urban Development (HUD) provide a comprehensive inspection report that points to major problems with the property however the inspection is necessarily time restricted and if conclusions cannot be finalized in the time of the inspection it is noted as such. So you’ll know you’ve got a problem, say, with the heating system, but you won’t know if it’s major or minor.

Bidding Blind

Is it worth buying a foreclosure without doing the background and, at least, driving up to check the neighborhood, the location and the general exterior condition? Only if you like surprises! Even a house that is fully maintained and up-to-date can provide you with unpleasant shocks when you finally take possession. The worst that can happen is that you will be unable to resell the property at a profit. If you really can’t manage to be thorough about preparing your project and understanding all there is to know about a foreclosure, walk away and spend your money on something more certain like poker.

How foreclosure auctions work.

When borrowers default on their mortgage payments, they stand to risk losing their home to the mortgage lender. In the event that this happens, the property is of little use to the lender. They must resell it as quickly as possible and to the highest bidder. This usually results in an auction being held to sell one or more properties.

Sealed Auctions

Because of the work done by Government Agencies over the past twenty years to encourage home-ownership for all, they now find themselves with a regular stream of foreclosure properties. This is due to the policy taken to guaranty mortgages at preferential rates to people on marginal incomes. Many of the properties are sold in a sealed auction where no one other than the auctioneer sees all of the bids. Individuals must make an informed judgment about the minimum the agency will accept for the property and a strategic guess about what others will bid.

HUD Auctions

The US Department of Housing and Urban Development (HUD) conducts an electronic sealed-bid auction through a country-wide network of real estate brokers. Anyone can bid in these auctions, however people intending to become owner-occupiers are given preference over developers, landlords and investors. Bidders must also make a deposit of “earnest money” to help validate their bid. Earnest money is $500 for properties with a value of less than $50,000 and $1000 for properties over this value.

A HUD auction is conducted over a 10 day period and all bids are classed as arriving at the same time for the first five days. If there are acceptable bids in the first five days the property will be sold to the highest bidder. If the bids received in the first five days are unacceptable, bidders can re-bid each day thereafter and a decision will be made at the end of each day whether bids are acceptable and a sale is declared. If the 10 days elapses and no owner-occupier bid meets the requirement, all other bids will be considered and the acceptable bid level may be dropped.

Open Auctions

Open auctions where an auctioneer will take bids from an assembled audience are still fairly common. In an open auction you know what all of the other bids are and you are able to judge when to join the bidding and if you want to dip out if things are getting too rich. These auctions have an energy all of their own and they can become quite addictive.

County Court Auctions

The classic foreclosure open auction takes place on the Courtroom Steps. You will be expected, in many instances, to demonstrate proof of your ability to pay. This generally entails bringing with you a certified check or money order to the value of 10% of the amount you intend to bid. It is necessary to show your check to the auctioneer or referee prior to the auction to demonstrate your sincerity; however this should be done with care to avoid advertising your intentions to your competitors.

Needless to say, all your research should be complete prior to the auction to ensure that you understand the condition of the property, the work necessary to bring it up to market value and the condition of the title. Buying at auction without this essential homework could leave you holding a lemon.