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With the meltdown of the sub prime mortgage market since 2007, there is a tremendous increase of foreclosure for sale.
Are you considering buying a foreclosure, but know very little about the buying process? foreclosure proceedings and auctions vary from state to state. The questions and information about buying a foreclosure at auction below below are specific to the Washington, DC Metro Area for Virginia homes, DC homes and Maryland homes.
For more information click here for foreclosure Laws by State.
How do I find auctions for foreclosure that are for sale?
Check your local or major newspapers in the "Legal Notices" section of the classifieds hard copy or online. Notices for homes being foreclosed and sold at auction are also posted at the entrance of the court house in the City or County where the home is located.
Why are these homes being sold at a foreclosure auction?
The mortgages of these homes are in default and are being sold by the Lender, Mortgagee or Trustee.
What is "default?"
"Default" means that the Mortgagor also known as the Homeowner has failed to make the payments and/or meet the requirements of the note or mortgage.
Where are auctions for foreclosures held?
Most auctions for foreclosures are held at the entrance of the court house steps of the City or County where the home is located. Some auctions are located at the office of the Auctioneer. If you are unsure check the Legal Notices in the newspapers, the notices at the court house steps or the Auctioneer or Attorney listed for the correct location.
Can anyone attend the auctions?
Auctions for foreclosed homes is open to the public.
How much does it cost to attend the auctions?
There is NO CHARGE to attend the auctions.
The sales price listed for the home is much lower than other homes is the neighborhood is this correct?
The sales price listed is normally the principal amount owed to the Lender. The price may include any past due payments, taxes and Condo or HOA dues. The price DOES NOT necessarily reflect how much the home will sell for at auction. The principal amount may also reflect default on the 2nd mortgage. Foreclosure on the 2nd mortgage is subject to any covenants of the 1st mortgage.
What is the principal amount owed?
The principal amount owed is the amount owed on the mortgage that is in default. The principal amount owed, may not include any costs associated with the foreclosure including but not limited to: Attorney fees, late fees, other collection costs, delinquent taxes, Condo or HOA dues.
What is the assessed value?
The assessed value is the value that the City or County has determined based on its assessment.
Can I look at homes that are going to auction?
If a home is listed in the MLS (Multiple Listing Service) your Realtor or the Listing Agent (Realtor advertising the home for sale) will have information if the home is on a lockbox or combination lock. If the home is a FSBO (For Sale By Owner) you may contact the Homeowner directly.
What if I find there is damage in the home?
All homes are sold "AS IS." If you have time, you want a Home Inspector or Contractor inspect the home to determine if there is any major or minor damage. Caveat Emptor - "Let the Buyer Beware."
If I attend the auction, do I need a Realtor or Attorney?
I recommend Buyer's Representation, especially for novices. You are entering into a legally binding contract and will be responsible for performing if you are the winner of the auction.
I receive numerous questions about buying foreclosures and will continue to provide the questions and answers as I receive them. If you are in the market and interested in foreclosures, I publish foreclosure reports for VA Homes, DC Homes and MD Homes several times a month.
About the Author
Reston Expert, Jennifer V-E Johnson is from Reston, Virginia and has lived in the Washington Metro Area since 1976. She earned a BA degree from the University of Virginia in Charlottesville.
All information deemed reliable but not guaranteed. Limited consent to preprint or republish this report may be posted, reprinted, emailed or faxed as long as the copyright and credit reflect "Courtesy of Jennifer V-E Johnson, Reston Expert and WashMetroHomes.com Real Estate."
VA Real Estate Broker, Reston, Fairfax County - Firm License
(#0226 021519) and Individual License (#0225 083246)
Circulated by WashMetroHomes.com
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