Thursday Q & A - Your Maryland Real Estate Investing Questions Answered
Q: How do I go about purchasing a home at foreclosure auction?
A: So far we've talked about due diligence, and what to do on the day of the auction. Today, it's time to talk about the Bidding Process. The most important part of the Bidding Process in a Foreclosure Auction is keeping your emotions in check. The Auctioneer's job is to get people to pay more money for the home. You've got to be able to keep your head on straight and remember that this home is an investment - you're not going to live there.
Before you go, know exactly how much you are willing to pay at the foreclosure auction. If you're not comfortable committing to a specific number, have your ideal number in mind, and consider going a specific percentage above that number. Use this method to figure out the most you are willing to pay for this home, and don't go $1 over this number.
It is especially important at a foreclosure auction that the auctioneer reads the entire ad. Request it if you have to. In the case of a foreclosure auction, if you purchase the home for less than market value (which you'd really like to do), the Homeowner can dispute the auction process (particularly if your purchase price is drastically less than market value). My attorneys have explained to me that in cases like this, that a Judge will probably rule in favor of the Homeowner because the process wasn't followed, and the auction will be invalid. Judges don't want to see people losing their homes if they don't have to.
The Bidding Process begins after the reading, and it goes very quickly.
If you'd like more information about purchasing a home at foreclosure auction in Maryland, please feel free to contact me.
Clients always ask me: Are you on the web?
See for yourself.
Tim McIntyre, GRI, Ellicott City Realtor, Catonsville Realtor
Helping Clients Buy, Sell and Invest in
Howard County, Carroll County and Baltimore County
for more than 25 years.
tmcintyre@cbmove.com 410-480-3555
www.timsellshomes.com
