An auction is a very easy to way to purchase a home that is defaulted on. All you have to do is get the location of the auction, the time and date, and show up. The chances for you that other people are showing up to purchase that particular house is slim. There may be others to bid on the home but they may have a set price that they will not go above. The competition is far less than what you may think. There may be no one else to bid on the house and if you are the only one then you are sure to have the highest bid and win the home. A bank is going to accept the bid if no one else bids and if the bid is fair. Don't bid way too low or the lender will turn down the bid. They may even have a starting price which is 80% of the home loan the borrower owed.
The great thing about buying at an auction is that you have the opportunity to get a home at the lowest price possible. Let's say that the borrower had an 80/20 loan. The 80% loan will be the one that is counted and the 20% loan will be considered a personal loan from a bank. The home may have been $200k but the bank will say that the owed amount is $160k. This will be the starting price at an auction but it may be even lower. This allows you to get a home extremely low at an auction.
The transaction at an auction when you buy foreclosure properties is really super simple. Many people think that they cannot purchase homes at an auction and they wait for them to go back on the market. Don't do this. Be sure you arrive with at a minimum 10% of the down payment to give to the lender when you make a bid. You will fill out the paperwork and the home will be yours. If you have cash then the home will be yours to move into very quickly and easily. The only thing that you will have to wait for is the title transfer and to remove anyone that may be currently living in the home.
