The Process of Buying a Foreclosure at Auction

January 8, 2008 by Lucas Lechuga

I often receive emails and phone calls from people who would like to participate in a real estate auction but have little or no knowledge of how the auction process actually works. Paola Iuspa-Abbott, of the Daily Business Review, published a piece today entitled “Real Estate Auctions Can Help Homebuyers Gain Properties But There Are Pitfalls”. It’s a great read for anybody that wants to learn more about the auction process.

I also want to note that there is absolutely no cost to a potential bidder if they decide to work with a licensed real estate agent. The agent’s commission is paid for by the auction house from the buyer’s premium. The winning bidder must still pay the buyer’s premium regardless of whether or not they decide to use the services of a real estate agent.

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14 Comments on "The Process of Buying a Foreclosure at Auction"


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Anonymous
Mauricio
8 years 8 months ago

Lucas,

Thanks for the link. Any auctions coming soon?

Anonymous
8 years 8 months ago

“I have been through six economic downturns since 1959 and it is always the same,” he said. “This time, too, you will get 30 percent to 45 percent discount of the retail price.”

Interestingly, Ms Ford got a discount of 52% and we are nowhere near the end of the down cycle. Makes me think this time IS different. The main reason is that the subprime element did not exist prior to this cycle and that can add a significant dose of further suffering to the builders and developers.

Anonymous
Julio
8 years 8 months ago

Any news on Loft III?

Anonymous
8 years 8 months ago

That is the second article I read today that quotes you Lucas, you are getting great PR

Anonymous
GLEN
8 years 8 months ago

Can anybody tell me how the JUDICIAL Sales work in Florida? Any Information would be greatly appreciated. Thank you

Anonymous
8 years 8 months ago
GLEN, If you are referring to the auctions that go on in court, I went to one a few months back. The first and most important thing you need to know is that when you buy a property in auction at court you have to close THE SAME DAY so you either need to be flush with cash, or have a good hard money lender in your back pocket. The auction I went to had 148 properties for sale, and only 1 sold, it was in Opa Locka. Everyone there seemed to know one another and there’s one guy who… Read more »
Anonymous
Glen
8 years 8 months ago

Thank you Candela ,That’s exactly what I wanted to know.I was told that ALL the property got sold though.I guess that’s not the case.I was hoping that I could pick up a certain unit that I was interested in .So in other word’s there is still a RESERVE on all property sold.Thank you very much again.

Anonymous
8 years 8 months ago

Alejandro,

The best PR that I’ve received since beginning this blog was being quoted in the Financial Times. They even included my phone number and a link to my blog on their website. That happened about 4-5 months ago. That was HUGE! Someone from Hong Kong flew out to meet with me as a result of that article.

Anonymous
8 years 8 months ago

Mauricio,

I haven’t come across any upcoming foreclosures. I’ll likely post about it if I do come across any.

Anonymous
vince
8 years 7 months ago

Need some help in buying a unit in my building? Im new at this Thank you

Anonymous
Lourdes
8 years 7 months ago

Anyone knows of a good floreclosure condo in Miami Beach or Doral Area??

Anonymous
8 years 7 months ago

As a real estate agent I have seen many foreclosers in the last months. But I have to say, that buying condo on a real estate auctions is not always a good deal because the most and best condos are already sold before it comes to auctions.

Anonymous
Joseph Bellestri
7 years 4 months ago

Lourdes,

It has been over a year since you posted this question regarding condos. Did you get any information on the subject? I am looking in the same area and would appreciate names, numbers, and email addresses of any auction houses, mortgage banks, or builders that deal in foreclosed condos.

Lucas Lechuga, if you are still involved with this site, perhaps you can answer my question.

Thank you for your assistance.

Anonymous
lara
7 years 4 months ago

Lourdes,

You have to give a definition of good foreclosure condo. What do you mean? Investment? Your own residence? You have to be more specific.

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