Many Auction.com buyers are familiar with our online auction platform. But many of them overlook another potentially profitable way to find excellent deals on investment properties.
Why give live foreclosure sales a try if you’re normally a bank-owned property buyer? 
Foreclosures sales are, frankly, another inventory channel to search, save, and win incredible investment properties.
Yet that’s not the only reason to give them a look.
In this article, I’ll review the biggest thing buyers of bank-owned properties miss when not searching live foreclosure sales.
Why It’s Important to Look at Live Foreclosure Sales Now — This Month
Since there are always going to be auction homes for sale and a risk you might miss a great investment opportunity, you may wonder, “What’s the rush?”
There’s a big reason for New Jersey buyers to explore live foreclosure sales right now.
That reason? We’ve got 2,000+ properties hitting the New Jersey live foreclosure sale circuit in April. That’s a lot of inventory. But even better, that’s a lot of opportunity to find and close on the perfect investment property.
Here’s what first-time live foreclosure sale buyers need to know.
What Bank-Owned Auction Veterans Need to Know About Live Foreclosure Sales
Before we get into the benefits of live foreclosure sales, it’s important to understand the differences among auction types. For our purposes, let’s compare only live foreclosure sales and bank-owned online auctions.
- Live foreclosure sales: These are live, in-person auctions where homes in the foreclosure process are sold by the county. (They may also be sold by a court-appointed representative like Auction.com.) If the property does not sell at the live auction, then the home is officially foreclosed upon.
- Online bank-owned property auctions: These are online auctions where institutional sellers offer buyers foreclosed properties through Auction.com.
Both allow users to purchase “distressed” properties. Both provide savvy investors great investment or wholesale opportunities to purchase a property and then eventually resell it for a profit.
It’s common for buyers to favor one type over another. (Each has its own pros and cons, after all.) However, buyers who never try both types are missing some major opportunities.
With the incoming 2,000+ properties into New Jersey auctions, it’s an ideal time for bank-owned property buyers to take a second look at live foreclosure sales.
How Live Foreclosure Sales Benefit Property Investors
Here are some of the key areas that make live foreclosure sales appealing:
- No Point-of-Sale (POS) Inspection Needed: When a buyer purchases a bank-owned home in New Jersey, they are required to get a POS inspection before they close the sale. But at live foreclosure sales, buyers don’t need to do pre-purchase inspections! This allows buyers to save money and time in closing.
- Know Immediately: With live foreclosure sales, buyers know immediately if they won or not, and they typically get the deed within 30 days of submitting their final payment. Make sure to check the property page for payment detail specifics and contacts.
- Competitive Edge: This is the first time these properties will be offered for sale at auction. You can be the ahead of the game and beat the competition by purchasing the property at this first-chance opportunity.
There are additional benefits as well, such as the auction outcome being certain at live foreclosure auctions. For example, there’s no bid deposit to participate in a live foreclosure sale (but you do need to have a cashier’s check for the down payment, which is normally 20%).
Preparing yourself with the proper funds is a good way to make sure you don’t miss out on a property. Make sure to bring certified funds for 20% of the total amount you are willing to pay for each property you are interested in. You’ll need to submit that amount for each property you win.
Ready to attend a live foreclosure sale? Great! There are just a few more things you need to know.
Important: Here’s What New Jersey Live Foreclosure Sale Attendees Need to Know
The benefits above set the stage for some great investment opportunities. But to avoid any unpleasant surprises at an auction, you should check local county requirements. Here are some sample requirements from some counties (though they may not apply in all areas):
- At the auction, buyers must generally pay 20% of the total purchase price the day of the auction. (This is the biggest one we see that surprises buyers!) Don’t just bring $2,500 like you would for an online auction.
- Be ready to pay using a cashier’s check.
- Once the sale is confirmed by the court, you have 30 days to pay the rest of the balance in full. (Double-check county requirements since this can vary by county.)
- The buyer is responsible for evictions on occupied homes.
Again, always check local county requirements before attending a live auction.
Get Started Exploring New Jersey Live Foreclosure Sale Opportunities
With 2,000+ New Jersey foreclosure properties coming to market in April, it’s the best time to explore live foreclosure sales if you’re traditionally a bank-owned auction buyer. With no POS inspection required before closing, a competitive edge, and the ability to know immediately, it’s a great opportunity to make an investment.
Want to get started? Click here to view a special search page with eligible New Jersey properties. Then save the ones you like with your Auction.com account, attend the auction, and place your best bids!
