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A co-worker of mine has a house going up for auction on September 3rd. It is in a kind of shady neighborhood so it is cheap and when he bought it in a good market he paid $120,000. The county now assesses the value of the house at $58,000. In an auction it could go for even less. I don't really like my living situation now and do not want to rent anymore.
My question is about the auction process. I don't have $50,000 sitting in the bank but am interested in buying the house. If you want to bid on a house do you need cash? Can you bid and then secure a loan? Or can you secure a loan for $XX,XXX then put in a bid? I'm young but have a steady, fulltime job, and have never owned a home before. Anyone?
Call the county courthouse where it will go to auction and ask their rules. Typically, you need a substantial cash down payment, and be able to secure funding quickly - much less than the standard 30-45 days for conventional lenders. Don't forget, at auction there is no inspection period and you also pay an auction fee (% of the price) on top of what you bid.
I recommend you go to a few auctions before September 3 and see how everything works. Also, you should know that just because something is scheduled for auction doesn't mean it will be put up that day. And if it is, the bank might have a minimum price set that is higher than what an auction price might bring (happens frequently, don't know why).
Call the county courthouse where it will go to auction and ask their rules. Typically, you need a substantial cash down payment, and be able to secure funding quickly - much less than the standard 30-45 days for conventional lenders. Don't forget, at auction there is no inspection period and you also pay an auction fee (% of the price) on top of what you bid....
Right, the process is different state to state. If the home is in Idaho as indicated by your location, then it will be sold at a trustee sale by a trustee representative. Best to check with the representative to find out the sale location and process - your co-worker may have the phone number.
In AZ, you would need $10K down payment to bid and rest by next day, no auction fee.
Thanks..I don't think it is in the cards right now, but wanted to inquire just in case. I guess the time for easy home buying is over, probably for the better. haha
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