Foreclosure is a legal process in which a mortgage company, bank, or other lender seeks to recover the remaining debt from property owners who have stopped making loan payments by taking ownership of the property. A foreclosure auction is a great way to buy a property at a low price. Before purchasing a property in such a way, you should do your due diligence. Seeking out the advice of an attorney is also recommended. Arturo R. Alfonso, P.A. is Miami’s local answer to searching “estate lawyers near me.”
What Is A Foreclosure Auction?
After a bank, lender, or mortgage company forecloses on a property, they want to recoup their loss. Selling the property at auction helps mitigate that loss by allowing the lender to receive the highest possible price for the property. Often, these properties cannot be thoroughly inspected before the auction, leaving potential buyers unsure of what the property may look like on the inside. Doing due diligence can help you lessen the risk of buying a building that needs a lot of work.
Steps To Take Before Bidding
- Find a lawyer. Searching for “estate lawyers near me” is a good place to start. But your search can come to an end; Arturo R. Alfonso, P.A. is here for you.
- Complete a title search on the property. This search will tell you who has a lien on the property, which will become your debts to pay after the auction.
- If you can get inside the property, hire a professional to inspect the house. If you cannot get inside, the exterior can provide some clues to the state of the interior.
- Know the surrounding area and neighborhood. Neighborhoods affect the value of real estate within them. Are there other foreclosed homes? What have homes in the neighborhood sold for recently? What direction are the prices trending?
- Know your limits. Figure out the most you can bid on a house to turn a profit. Consider repairs, inspections, and other costs that may pop up. Compare those to the retail value of other homes in the neighborhood.
- Understand the auction requirements for your area. What fees need to be covered? How much cash do you have to pay upfront? What does the auction process entail? Knowledgeable real estate attorneys can help you sort these questions out.
- Finally, do not do anything with the property until you hold the title. This could prevent legal battles with the previous owner down the road.
Auctions can be a great way to pick up property for cheap, but they are also a lot riskier. Being knowledgeable about the process and the properties you want to buy is essential. Working with a real estate attorney who has experience with foreclosure sales is a great way to ensure you conduct due diligence. They can also help you understand the responsibilities and liabilities you may have if you win the property at an auction.
Are you interested in buying property at a foreclosure auction? Arturo R. Alfonso, P.A. is here to help. We are Miami’s answer when searching for “estate lawyers near me,” and we are experienced in handling the most complex real estate cases. Contact us today.