Before you bid, some things to know about buying foreclosed multi family homes at auction
When buying foreclosed multi family homes at auctions, there are many factors to take into consideration. Buying multi family homes foreclosed at auctions is a great way to get a home for lower than market value, yet you could run into problems if you’re not familiar with auctions or foreclosures.
Finding an available home
Most people can find a suitable home at foreclosure auctions because there are so many Housing and Urban Development (HUD) foreclosed homes available for sale. With the economy still recovering and unemployment rates still high, many families have been faced with foreclosure. With a HUD home, the government pays off the home loan upon foreclosure. Then the government sells the home in an auction to help recoup at least part of the money they had to pay back on behalf of the original owner.
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Understanding HUD as-is sale conditions
When you are thinking of purchasing a foreclosed multi family home from an auction, you must remember that government foreclosed homes are sold as-is, with no expressed warranty. This means that you will have to pay for any repairs or renovations necessary once the sale is complete.
Placing a bid
Once you understand the terms of a HUD auction sale and pick a house, it is time to place your bid. You cannot place a bid on your own in a foreclosure auction. If you did not enlist the services of a realtor to help you find a house, you will need one to help you with the bidding process, since HUD accepts bids only from registered realtors.
Available financing
There are only two financing options when it comes to purchasing a foreclosed HUD home through an auction. The first is to pay with cash. Many people save their money until they have enough to make an outright purchase. This method of financing can help eliminate additional time and paperwork.
The second way to finance a foreclosed home is to secure a loan through a mortgage lender prior to placing your bid. Many lending institutions will grant a pre-approved loan letter to in good credit standing. Private financing is the only other way to finance HUD home purchase.
Buying foreclosed multi family homes from auctions can be a good way for investors to make money and for families to achieve home ownership. To research foreclosed properties and home values, go to Reply!