Would-be buyers of foreclosed homes should consider participating at a government auction if they want good bargains. There are multitudes of government foreclosures regularly auctioned off across the country. These are homes repossessed by government agencies fundraising basket ideas like the U.S. Department of Housing and Urban Development or the HUD. There are also tax foreclosures being sold by the Internal Revenue Service, foreclosed farm homes from the Department of Agriculture and other seized properties by the Federal Bureau of Investigation, the Veterans Affairs Administration and other government offices.
Shared Elements of Government Foreclosures
All these homes get sold through a government auction. They share similar features even as they come in different types and dimensions. For starters, most government foreclosures are cash sales, so buyers would have to be able to put up the entire amount even before they participate in the auction. Some of the homes of the HUD can be purchased through financing, especially the ones which are being offered to low income families purchasing their first home.
Most government agencies accredit a network of Real Estate agents and brokers to market their homes. Interested buyers can simply approach a realtor to find out who the accredited brokers and agents are in a certain locality. These agents will assist buyers during the government auction, which are mostly silent auctions.
A buyer’s offer should be based on factors, such as the physical condition of the property, its location and the price of similar homes in the same area. When the silent auction commences, interested buyers will enter their sealed bids through the agent or broker. After the period of making the offer expires, the agency that organized the auction will open the bids and the highest bid gets to purchase the home. If you succeed in winning a government auction you have to be prepared to settle payment for the home in under a month.