how do forclosure sales work?

Answer 1

Almost exactly like regular sales "work"

you can find most all of them listed in the mls just like the rest.

Banks aren't generally any easier, often not as easy, to negotiate with as "regular sellers".

Check out what's available in your area on the following sites.

www.hud.gov click on the link in the left collumn- Hud homes
Those are all foreclosures.

www.realtor.com

these have foreclosures mixed in with regular sales.

best of luck,

Answer 2

Well the person above is correct, but that is not how to buy a foreclosure at an auction. If this is what you mean you need to read your local paper and find one you like. Bring the certified check for the amount listed in the paper. Once there you register with the auctioneer and the bidding begins. The highest bidder wins the house. If the bids do not get high enough the bank buys it back, and that's when you do what is described above.
Remember the certified check acts as the deposit if you win. you have 30 days to come up with the rest or you lose your deposit. It is an as is sale, and there are no inspections performed. You most likely will not even be able to see in the house.
Be cautious, I have seen some real horror shows.
Good luck
RE Agent,
Remax

Answer 3

It depends on your state laws but generally this is how it works.
You begin with a lawsuit being filed. This is either referred to as a Notice of Default or Lis Pendens depending on the state. This period can last from 3 months (Notice of Default) to 1-1.5 years (Lis Pendens).

Following that a judgment is filed which is when the final lien amount is determined and an auction date is scheduled.

Finally, 2-4 weeks prior to the auction a legal notice must be printed for the public to view. The day of the auction a referee, auctioneer or sheriff will call the property as well as the "upset price" in most cases. This is the minimum amount that the bank will accept during the auction. Generally, if you win you will need to bring 10-20% of your final bid as a down payment with closing in 30 days. Check your county laws for the details on how much will be required at the time of the auction.

If the property goes to auction and no one bids on it the bank will take it back and it becomes and REO. You can contact the bank to make an offer.

The most important aspect of getting involved in foreclosures is that you know everything you can about the process in your state, how to get financing and also the real estate laws in your area. This will help you avoid any poor investment decisions.

Good luck out there and remember: Research, Research, Research.