At the auction the auctioneer will read different legal notices and descriptions about the government foreclosures. After the readings have taken place then the bidding will begin on the property. The auctioneer will take the bids. Bidders must be prequalified with a loan or they must have a check to pay for a deposit on the home. Many deposits are commonly $5,000. The increments of the deposits may be higher. The auctioneer will ask for higher amounts in increments of $500 or even $1,000. The process will continue until the highest price has been met for the sale of the property.



Once the highest bid is made on government foreclosures then the auctioneer will announce going once, twice, and sold to the highest bidder. After the highest bidder has been determined then their will be plenty of paperwork to be drawn up. The paperwork will include deeds and purchase papers. The new purchaser and the mortgage holder will be required to sign these documents.

There will also be a grace period once you bid on government foreclosures for a government auction. This will allow the bidder to arrange the financing of the property. Usually, the time frame for the financing is 30 days. The closing of the home will then take place once the financing is settled. No one walks into the purchase of a home at an auction on the same day. They have to follow the process. Also, if there are inhabitants in the home then they will need to be removed also. This process should begin right away.