Sheriff Sale Guide for Bidders
A sheriff sale is the name given to a foreclosure auction in states where the sheriff must handle the proceedings. If you are interested in purchasing property well below the retail value, consider investing in real estate through these property auctions.
A sheriff sale in one state and a foreclosure auction in another are going to appear very similar. In both cases, these are auctions of homes that have fallen into foreclosure. When the homeowner fell too far behind on the mortgage payments, the bank seized the home. In an attempt to recoup some of the losses from the process, the bank offers the property for auction to the highest bidder. Bidding usually starts much lower than the actual value of the home, because the bank simply wants to recoup what was lost, not make a profit from the equity the original owner hand in the property.
Homes offered through these auctions represent a good investment opportunity in some areas. Provided there are not too many bidders interested in a particular property and the opening bid is well below the home’s actual value, investors can purchase properties at huge discounts, turning them into their own homes or flipping them for a sizeable profit.
To learn of sheriff sale opportunities in your area, contact your local county government office. Typically, these auctions are held at set times of the month or week, so you can learn about them well before they occur. They also may be published in your local newspaper.
If possible, do a drive by of the house before the auction. Check for signs of serious damage or costly repairs that will be needed. Sometimes a home is still a good investment, even if it needs repair, because the price is so low. However, make sure that you know the home’s condition prior to bidding. In some areas, homes being offered in a sheriff sale may be open to the public a few days or hours prior to the auction, so inquire about these details.
If you are the successful bidder at a sheriff sale, the house becomes yours as soon as you pay the amount you bid and sign the deed. If the home’s prior owners still reside on the property, you may have to take legal action to make them leave. Once the home is empty, it is yours to do with as you wish. You can start making repairs, move your family in, or begin sprucing it up to sell, because you are the home’s new owner.
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A sheriff sale is a great way to get properties for much less than list price. Find out more at http://www.civicsource.com.