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How do I buy real estate properties at auction?

Buying properties at the foreclosure auction or "at the courthouse" is an experience unlike any other in purchasing real estate. You will look for the attorney who represents the interests of the mortgagee and assure him or her that you are qualified to buy the property. The minimum bid price includes the full amount of the unpaid indebtedness owed to the foreclosing lender, plus legal costs. Other bidders will be investors like you and possibly junior lien holders whose interests are otherwise extinguished by the foreclosure action.

The attorney will qualify bidders by asking to see their earnest money deposits. We suggest you contact the attorney in advance. You will need a cashier's or certified check that is usually non-refundable if you win the bid. This secures your purchase of the property and is not contingent on financing or inspections. Observe closely when the attorney examines the deposits to identify the real bidders and thereby establish the extent of the competition. The winning bidder will have to be fully prepared to close within as little as 30 days after tendering the deposit to the attorney and signing the contract. The attorney starts the bidding at the specified minimum amount and continues to solicit bids from you and other interested parties until the winning bidder is determined. Don't picture the image of a fast-talking auctioneer with a gavel. Although, the bidding process can occur very quickly, often in as little as three minutes, it is more like a conversation among a few people, with the attorney in the center. Be vigilant in tracking the bids and watching your competition. You should always decide on your bidding strategy and your upper limit before you start bidding.

This series of articles is brought to you by A. Mark Argentino and other real estate related resources, including Canadian Real Estate Association CREA and the Ontario Real Estate Association OREA. Back to list of Real Estate Helpful Articles

Whether you are interested in a Power of Sale Property, a Foreclosure Sale or a regular property purchase, I can assist you with all of the complexities when you purchase or sell your next property.  Please don't hesitate to email me If you have any questions or require further information, please send me an email. Thank you, Mark Argentino Read about Power of Sale, Bank Sales and Foreclosure Properties FAQ's Read a very detailed section about Power of Sale and Foreclosure or go back to list of Real Estate Helpful Articles