There are several differences between purchasing a home at a foreclosure auction and purchasing a home that has already been foreclosed on; the REO. These differences vary from state-to-state and bank-to-bank, but generally if you purchase a home at auction, you should consider the following:
When buying a Bank-Owned property most of the above issues are addressed by the mortgage bank. For the inexperienced home buyer and investor alike, purchasing an REO or Bank-Owned property is much easier.
Purchasing a bank auctioned home can often provide significant savings if you are prepared to deal with all of the above issues. Again, they may vary from state-to-state and bank-to-bank.
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Additional considerations are that the auction home is sold in "as is" condition, you will need to have your financing in place
There are differences between purchasing a foreclosure property at a bank auction and purchasing a bank-owned property from a lender’s inventory. It can vary from lender-to-lender and from state-to-state.
In summary, the major differences between purchasing a foreclosure property at a bank auction, and from purchasing a bank-owned property are: whether or not the title is clear, the asking price, possibly evicting the occupants, preparing your offer, presenting your offer, seller financing, and the “as is” condition of the property.