How It Works

You can find a list of properties to be sold by government foreclosure auctions for free.  You can use a paid service, but why bother?  All you need to do is check out the US government's web page at the US Department of the Treasury.  You won’t just find homes and farms listed, but often will find cars, boats, office equipment and sometimes rare books.

Changes By State

Government foreclosure auctions are a little more complicated than the usual auction where you show up and raise your hand, pay and immediately take the item home.  It's more like an eBay auction.  The actual particulars of when and where you present your bid differ from state to state.  In some states, you only need to bring ten percent of your bid with you in order to win the home.  For other states, you need to bring the full amount.  That's a big difference.

Caveat Empor

One of the disadvantages of any kin of real estate auction is that once it's yours, you can’t back out of the deal.  You need to know as much information about that property up for a government foreclosure auction as possible before you decide on a bid.  You are responsible for checking on the property's condition yourself.  This can be difficult if there are people still living on the property.

If you really have your heart set on the property, you may be able to work out a deal to buy the home from the people still living in the house.  In this way, the government foreclosure auction is stopped.  But you have to check with the broker assigned to handle the auction.  Again, laws vary from state to state.

Thankfully, the government does not directly handle government foreclosure auctions.  Nothing would ever get sold.  In order to get things done, what the government does is hire local brokers and real estate agencies to handle the whole thing.

St. Joseph

If your home is slated for a foreclosure auction sale, you should be able to stop the auction proceedings if you find someone to buy your house.  You still will have to move out, but at least you won’t be under so much crushing debt as before.  If you need to attract a buyer very quickly, you need to buy a small figurine of St. Joseph (the Catholic saint of home life) and bury it head-down or with the head pointing towards the street. 

You can pray to St. Joseph, anoint the statue with holy water or give some money to charity during the burial process – it really doesn’t matter.  In order to get the Saint to help you in your foreclosure auction sale problems, you need to be sincere and you need to be looking for another place to live.  You can’t expect even St. Joseph to do all of your work for you.

Sigil

If you are on the other end of the foreclosure auction sale process, you will want to be the lucky one with the winning bid.  One way to insure this luck is to make a sigil.  Sigils have been used for centuries for just about anything you want.  They still work today, in the way that any lucky charm brings you luck. 

The theory is that by making the lucky charm yourself, you put more of your energy into the process, and this charges your wish like electricity charges up a battery.  It also keeps you from going crazy waiting for the day of the government foreclosure auction.

To make a sigil, draw a symbol of the home you want to buy in the foreclosure auction sale.  Make this symbol in any way you like out of any materials you like.  Even markers and construction paper will do.  Keep the sigil with your materials on the foreclosure auction sale and then take it with you when you make the bid.  If you can make the bid by phone, then hold it while making the call.

Stick With One Area

Only real estate professionals can afford to buy property at bank foreclosure auctions from all over the world – sometimes even sight unseen.  They have the capitol to cover up any real estate blunders.  You don’t.  You need to focus and become a specialist in the real estate market in one town, one city or one state before you even think of bidding on a bank foreclosure auction.

When you stick with one area, finding foreclosure lists is a lot easier.  By law, all houses beginning the foreclosure process are listed in court houses, from banks and from local brokerages.  Depending on where you live, they are also listed in the newspaper (although this trend seems to be disappearing).  You can also find them on the internet from Free Foreclosure Database.

Stick With Your Price

You will need to be very patient to find a bank foreclosure auction in the real estate market you specialize in.  Considering that you'll be dealing with hundreds of thousands of dollars, you can afford to wait.  While you're waiting, check out the laws about bank foreclosure auctions in your state.  Some states require that bidders pay for the home all at once.  You need to be ready for that.

You don’t want to risk going bankrupt while buying a home at a bank foreclosure auction that you want to resell.  It is vital that you keep your cool to keep with your budget when looking at homes on a foreclosure listing.  Don’t get too excited by any home you see listed as going under a bank foreclosure auction.  Assume that something is wrong with the home and that a better one may be up for grabs tomorrow.

When you do find a bank foreclosure auction listed that fits all of your requirements, then go to check the property out yourself.  A foreclosure listing tends to also list the estimated worth of the home, but it may be far off.  Banks are great at handling money, but not so great at home insepection.

The Process Takes A While

One of the big misconceptions about bank foreclosure auctions is that they happen immediately after getting a foreclosure notice.  The process takes months.  By law, you are given at least a month to not only try to get your finances in order, but to find a buyer for your home rather than have it go up for a foreclosure home auction. 

You can get help to halt the foreclosure process from HUD (Housing and Urban Development).  HUD employs credit counselors that work for free ("pro bono"). HUD pays them so you don’t have to.  You can find where the closest HUD counselor is by checking on their website or calling 1-800-569-4287.

Some things a HUD-approved counselor can do is let you know your rights as a home owner in your state and in your particular financial situation.  They will also help you find legal ways to delay a foreclosure home auction.  Your creditor or bank would rather not have to deal with your home, because this is a money-losing hassle for them. 

Stay Away From Scam Artists

There are many scam artists who promise that they can stop foreclosure home auctions after you pay them a huge fee.  After the check cashes, they skip town and you are still left with the prospect of dealing with a foreclosure.  You can tell they are scam artists usually because they claim they can fix your credit record or ask you to falsify some records.

Don’t Take Revenge

If it appears inevitable that your house will go to a foreclosure home auction, don’t try to "get even" with the bank by either trashing your home, leaving dead animals or home made bombs on the property.  This is not only cruel, but will land you in jail.  If you have to give up your pets, please surrender them to your local animal shelter.

Besides, it is just a house.  It's not the house that makes a home.  If you are deeply in debt, selling your current house may be what you need to get back on your financial feet again.

Do Your Homework

You need fortitude more than luck in getting bargains at real estate foreclosure auctions.  They are not for the faint of heart or for people thinking that they will get rich very quickly.  Real estate foreclosure auctions are for people in for the long haul, who have plans for the property or even to live in it.

In order to not become bankrupt in anything having to do with real estate, let alone foreclosure home auctions, you need to really study your market and know your budget limits.  Write down all of the qualities of the ideal property you are looking for and use that as a guide to keep you on the road to success in real estate.  On this list, include where you want the property to be, how much and whether it should have any extras.

Trust Your Own Instinct

Don’t participate in a real estate foreclosure auction just because you feel as if you have to be playing the market every moment of your life.  You have to wait for just the right property.  You'll know it because it will match your written ideal as closely as possible.  You can’t be swayed by dollar signs, thinking that you can soon sell a foreclosed home for twice what you bought it for.  Plan on keeping the property for a couple of years, at least.

Because you are making such a huge investment, you don’t want to completely trust the words and reports of others.  You need to go into the property and check it out yourself.  Even if there has been a detailed inspection report from the bank or creditor's evaluator done, don’t rust it.  Get your own home inspector to check it out.  In this way, you will know how much you should bid or even if you should bid at all.

Real estate foreclosure auctions might be more numerous than they have been in years past, but don’t act hastily in order to get a true bargain.

Know Your Market

Although you could subscribe to online services that let you know when foreclosure auctions are going to happen anywhere in the country, you are asking for trouble buying property in a market you know nothing about.  For example, it's no good buying a mini mansion in South Carolina if it's located in a town hit by a hurricane last year.  What you need to do is know what specific market you want and then wait for a foreclosure auction in your desired area.

Bidding Etiquette

It is perfectly okay to contact the owner of the property to try and do a deal so the property doesn’t go on the foreclosure auction block.  Usually, owners are given about a month to find a buyer.  It's often much easier for banks or the government to deal with sales of foreclosed property than an auction.

If things don’t work out, you can still bid on the auction.  It is up to you to find out what realtor is handling the auction and if you can phone in a bid or if you have to attend in person.  It's not up to the owner of the property to let you know all of the gory details.  Since laws about bidding on foreclosure auctions differ in each state, you have to acquaint yourself with your state's laws (or the laws of the state where the property is located).
 
What Am I Bid?

Usually, a good bid is twenty percent less than the estimated market value of the home or property being foreclosed upon.  You can find the estimated market value by reading the complete valuation report or property reports.  However, it is urged that you not only inspect the property yourself, but hire your own home inspector to give it a once-over.  Although you can get bargains at a foreclosure auction, it's not a bargain if you bought a home just about ready to fall apart.

Depending on the foreclosure laws in the state where the auction is taking place, you may have to pay for the property in full.  Keep that in mind when determining your bid.

The commercial foreclosure process is one that could very well take awhile depending on the state that you are in. Some states take just a few months while others can take over a year to complete the process. Either way, the longer you allow the commercial foreclosure process to continue, the more money you are going to owe the mortgage company because the attorney fees and costs will keep building up until the whole thing has spiraled completely out of control.

Finding Help

There are some different programs out there for people who are in need of assistance in pulling themselves out of a commercial foreclosure process. These organizations are generally free of charge because they are typically non-profit. Check with your mortgage company because they should have a list of places that you can contact for some help. This is not to say that they can all help but it is certainly worth picking up the phone to find out. The worst thing they can say is no and you will be left no worse off then you are right now.

There is also the chance that a bank out there may lend you some money in order to get everything caught back up. If you are able to find a bank to lend you the money you have to be prepared for the fact that you are going to be paying on a loan with an extremely high interest rate. In the end, as long as you are able to pull yourself out of the commercial foreclosure process then it is worth it. Just keep your head held high and keep looking for ways to get everything back on track. If you feel that you still will not be able to keep up on the mortgage payments, this will at least buy you time to sell everything off which is much better then a commercial foreclosure process on your credit.

If at all possible then you are going to want to try everything you can to get yourself out of the bind that you are finding yourself in. If you have any friends, family, or co-workers that can help you get out of this mess by lending you money then that is a great way to go. There is also a lot of options that the mortgage companies themselves can offer people if they simply call to ask about them. You may want to give the mortgage company a call to see if there is a repayment plan or something that you can get set up on to pull yourself out of the commercial mortgage foreclosure mess that you are in.

What Can Happen

If you let the commercial mortgage foreclosure process go completely through then you could be facing a lot of different troubles. First, if they fail to be able to obtain enough money at the sale to cover what you owe then you are automatically responsible for the rest, even if you no longer have the property. They can also decide to garnish any future wages you get in order to make sure that they get all of the money back that they are owed. This is very important to consider because your problems will not automatically end once the commercial mortgage foreclosure process is done.

There is also the chance that the mortgage company can put liens on any other properties that you own and that includes the home that you may own for you and your family. There are a lot of problems that can come about from a commercial mortgage foreclosure and this is why it is so important to make sure that you pull yourself out of trouble if you find yourself in the middle of it.

A commercial loan foreclosure is no different then a house being foreclosed on other then it was your business instead of your home. The main goal is to get the commercial loan foreclosure process stopped so that you do not end up facing more troubles down the road. You want to get everything pulled together so that you can either keep your business running or you can sale the property and the business and possibly make a little bit of money out of the deal.

Getting Help Fast

When it comes to needing fast cash to get the commercial loan foreclosure process taken care of, the best thing you can do is borrow the money from someone or from some lender to bring your mortgage account up to date. Of course there is no point in doing this unless you know for sure that your financial situation will allow you to maintain the monthly payments from there. If you are able to keep up with things then your friends or family may be willing to help you get out from underneath the commercial loan foreclosure process.

If you do not know anyone that can help you out of the commercial loan foreclosure process then you should try contacting some different government organizations, as they may be able to assist you. If you are not sure where you should go for help, your mortgage company should be able to provide you with a small list of places to check out. There is nothing wrong with seeking out a little help as you are trying to protect your financial and credit future. Start calling around because not everyone can help you but if you give yourself enough time to search places out you may eventually find a place that can help you.

The commercial real estate foreclosure is something that you should really try to avoid at all costs. Once the foreclosure process begins, you will want to research your state's individual laws on foreclosure proceedings to make sure you know exactly how much time you have before the whole process is over with. You have up until the moment of sheriff's sale to pull your property out of foreclosure. Whether this is through a repayment plan or bringing the loan completely up to date, something needs done and it needs done fast. The longer you allow the commercial real estate foreclosure process to continue, the more attorney fees that are attaching to your loan.

Finding Help

It is very important to make sure that you find some sort of help to pull you out of the commercial real estate foreclosure process if you are not able to come up with the funds to do it yourself. There are a lot of different programs out there that you should be looking into so you can get things back in order. With the breech of contract letter that your mortgage company sent you, there should be a list of a few government or non-profit organizations that you can call. This is not to say that they can all help you but it is certainly worth a shot.

If that does not work then there is the route of asking your friends and family for a little help. You may find that they are more willing to help you then you think but you have to first ask to find out. They may understand your troubles with the commercial real estate foreclosure process and want to help you see it through. There is nothing wrong with seeking help as the last thing you want to do is sit back and do nothing. Just start looking around to see what options are out there for you and get started on getting everything back in line.