auctionA foreclosure property will usually end up at an auction. Real estate auction practices vary by state but common practice is for the auction to be held in front of the foreclosed home.

Real estate auctions offer the best chance for a great deal but also hold the greatest risk. Auction properties are sold as is, with no opportunity for potential buyers to perform inspections. When buying a home at auction, the buyer must pay cash, usually a cashiers’ check. It is also possible that there may still be tenants living in the home. In such a case, you would be responsible for the often costly eviction process.

Property auctions can be located through local real estate auction houses and are often attended by local investors, homebuyers and even the current owner who is in default. If you are interested in purchasing a home at auction it may be good idea to attend one prior to gain an understanding of the process. Auctions are open to the public.