These days real estate auctions don’t have to be sourced through a real estate agent. With the World Wide Web, people can locate the best real estate auctions for their particular needs. These days you can acquire a property online and even bid on it yourself without professional help.
How does a Property End up at a Real Estate Auction?
There are two types of real estate auctions, tax lien auctions and foreclosure auctions. Before a property reaches the auction, several things must have occurred before the property goes on the auction block.
If the owner of the property hasn’t paid the mortgage for months or in some cases a year or more, the bank that holds the title will issue a notice of default. If the owner of the home doesn’t pay the remaining balance on the home, or is unable to renegotiate the loan with the bank or lender, the property could go up for auction.
A tax lien is the other way in which your property could wind up on the auction floor. If local, state or property taxes are severely past due, the unpaid tax authority, not the lender, will seize your property.
How Real Estate Auctions Work
Auctions can take place at the local courthouse or at another location that is chosen by the auction company. Properties can also be auctioned online. The local sheriffs take care of tax lien auctions.
The real estate auctions starting price could be the mortgage balance or a lower amount to create interest. If it is a foreclosure auction, the bank/lender cannot profit from the real estate action. Foreclosures are often sold at a loss, however, if a profit is made the balance goes to the homeowner.
If you are researching real estate auctions check out the calendar at Powell Auctions. You just may find the home of your dreams.
Call or click for more real estate auction information from Powell Auction today.