Foreclosure Buys Versus Foreclosure Auction Buys

Well I think that really just depends on you. Purchasing a foreclose REO the regular way allows you to make offers and counter offers and write in contingencies. Usually getting the property at or just under FMV unless you are offering on a fixer upper.

Buying foreclosures at auction will allow you to bid on properties starting as low as 1000K and getting it pretty cheap especially if that same property has been to auction before and had not sold. (even if you bid 10K on a property worth 86K and were high bidder, you still may not get it if seller /lender has a reserve set and you bid did not meet it.

This form will not allow contingencies, you are buying as it. They usually want the pre-approval letter, 5K cashiers check at time of registration for auction and checkbook or cash on had to make the rest of DP ( so if you were qualified for a 90/10 loan and had to put 10% down,) if your 5K cashiers check did not cover the 10% down you would have to write check for the diff right there on spot and closing can range from 15-45 days MAX.

So in essence you can negotiage by buying the regual way, but buying at auction you may get the property very cheap or a lot cheaper in some cases but no negotiating, take or leave it.

Got it Anita, I understand now. It seems that you do have little room from any negotiation but if you have the money in hand it can be a profitable transaction. Thanks for your imput.

JButcher

Buying at acution is the most dangerous way. Typically it requires all cash and the inspection is limited if available at all.

REO is the safest.

Buying at acution is the most dangerous way. Typically it requires all cash and the inspection is limited if available at all.

REO is the safest.