Foreclosure 101 Webinar:
Your Guide to Foreclosure Auctions

Watch Our Webinar Replay to Navigate Foreclosure Auctions with Ease
In this webinar, Auction.com’s Buyer Success Team presents you with a comprehensive guide to Foreclosure auctions. Learn how to successfully bid and win foreclosure properties. Empower yourself with the knowledge and strategies to navigate the Auction.com platform like a pro.

Why Watch This Webinar?
Whether you’re a seasoned investor or new to the world of Foreclosure auctions, this webinar will equip you with the tools to help you achieve your real estate investment goals. By the end, you will be able to formulate a confident bidding strategy to bid on Foreclosure properties.  

What You'll Learn:

Foreclosure Timeline: From Default to Auction (1 of 9)

  • The Foreclosure process begins when the homeowner is unable to make their mortgage payments and the property enters default status, eventually leading the lender to initiate the Foreclosure process and place the property up for auction.
  • If the property is sold to a winning bidder, the deed is executed and transferred to the new owner.
  • If there is no winning bid, the property may revert back to the lender to become REO.
  • To learn more about Bank-Owned (REO) online auctions, you can head to this prerecorded webinar link.

How It Works: Auction.com In-Person Bidding (2 of 9)

  • Create an Account: Sign up for a free account on the Auction.com website or mobile app.
  • Search for Properties: Browse, search, filter, and sort to find properties that meet your investment goals.
  • Save Properties: Save properties you’re interested in to receive tailored recommendations and real-time updates.
  • Conduct Due Diligence: Review key information on the Property Details Page to conduct your due diligence before bidding.
  • Prepare for Auction Day: Ensure you have the necessary funds ready for bidding.
  • Register to Bid: Register to bid either online or in person at the auction site.
  • Winning the Bid: if you are the winning bidder, you must make the full payment by 5 PM on the next business day.

Types of Live Auctions (3 of 9)

  • Non-judicial Sales: Conducted by a third-party agent appointed by the seller or the lender
  • Judicial Sales: Conducted through the court system and overseen by a court appointed official.

Property Status Terms (4 of 9)

  • Active Scheduled for Auction: The property is scheduled for auction, but it may be postponed or canceled depending on changes.
  • Active Cleared for Auction: The auction is scheduled, and the property is cleared for sale, with very little likelihood of postponement or cancellation.
  • Postponed: Auction event needs to be rescheduled as the homeowner may be working with the lender.
  • Cancelled: The sale is cancelled due to the homeowner redeeming their property.
  • Sold: The property was successfully sold at auction to a live bidder.
  • Reverted to Beneficiary: The bidding did not meet or exceed the credit bid, so the property is retained by the lender.

Important Terms and Concepts (5 of 9)

  • As-Is Condition: Properties are sold without warranties leaving them to the buyer to handle repairs, potential evictions, and maintenance.
  • Opening Bid: The starting bid set by the lender or other court official.
  • Credit Bid: The amount bid by the lender equal to the amount owed by the borrower, which is not always disclosed publicly.
  • FCL Predict™: Foreclosure Predict is a tool that helps highlight the properties that are more likely to reach auction.

Property Details Page (6 of 9)

  • On the Auction.com Mobile App: The property’s status, opening bid, and other key information are displayed.
  • On the Desktop Version: Users can access more comprehensive data, including price insights, estimated resale value, and comparable area sales.
  • Save Properties: Clicking the heart icon allows users to save properties and receive notifications about any status changes.

Due Diligence Steps (7 of 9)

Our top 7 handy due diligence steps:

  • Conduct a drive-by inspection without disturbing the tenants. You are responsible for complying with all applicable laws, including those against trespassing.
  • Perform a thorough title review.
  • Consult local experts for insights.
  • Estimate costs and budget for any potential renovations.
  • Check the Property Details Page for important terms and conditions of the sale.
  • Consult a real estate attorney about zoning regulations and other rules.
  • Ensure proper liability insurance coverage.

Preparation To Fund In-Person (8 of 9)

  • Bring Your Maximum Spending Amount: Be prepared to bring the maximum amount you’re willing to spend on the property of interest.
  • Use Multiple Cashier’s Checks: Bringing multiple cashier’s checks is recommended to ensure you can receive an immediate refund if you overpay.
  • State Requirements: Note that some states require full payment at the auction.
  • Payment and Deed Transfer: Once payment is made, you will receive the deed and any applicable refund within 30-45 business days.

Post Auction Steps (9 of 9)

  • Submit Vesting Details: Provide your vesting information and pay for the property at the auction to receive a receipt of sale.
  • Deed and Refund Processing: You will receive the deed and any applicable refund within 30-45 days from the foreclosure attorney firm.
  • Obtain Possession: The buyer is responsible for taking possession of the property.
  • Handle Occupied Properties: If the property is occupied by a tenant, it is the buyer’s responsibility to initiate legal eviction proceedings.
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Frequently Asked Questions

The state where the property is located dictates whether the Foreclosure is judicial or non-judicial. For example, in judicial states like New York, Foreclosures go through the court system, while non-judicial Foreclosures are processed outside of court.
As part of your due diligence, check public records and conduct a drive-by inspection, without disturbing any tenants, to see if the property is occupied. This will help you anticipate whether eviction proceedings may be necessary after your purchase. Remember, you are responsible for following all applicable laws, including those against trespassing.
Yes, this may happen. If the property is rescinded, it means the homeowners may have been able to catch up on the loan repayments. In such cases, the trustee will reach out to you and return the funds paid.

Yes, there might be additional fees such as recording fees or ad valorem taxes, especially when it comes to judicial states. It's important to understand the terms that dictate Foreclosure sales in the specific state to account for all additional costs.

For remote bidding, the payment is typically expected via wire transfer. Depending on the state you’re in, you may be required to fund your escrow account with the full amount you are willing to spend on the property.

Yes, you can have a buyer’s agent or representative place bids on your behalf. However, some states impose restrictions on the types of agents who can represent you. Be sure to check the regulations in the state where you’re bidding.

Questions?

For further information you can reach out to our Buyer Success Specialist at
BuyerSuccess@auction.com