How to Profit from Foreclosure Auctions in 5 STEPS
By Mike Upshaw
If someone asks you 'what's the BEST way to profit from
foreclosure auctions'? what would your answer be?
I BET you can't tell me and that's why you're reading this
article right now, aren't you?!
Here's the real 'TRUTH' on how to profit from foreclosure
First of all, you must know exactly what a foreclosure is.
A foreclosure takes place when the owner (borrower) is unable to
pay his lender the monthly mortgage payments; the lender will notify the
borrower and let him know to find the money within a specified amount of time
(varies in each state) otherwise the lender will be forced to repossess the home
and begin the foreclosure procedure.
A foreclosure auction is held so that the lender can try to sell
the home at a public location to the highest bidder for a price lower than the
actual market value of the house simply because the lender wants his money back.
Secondly, you must understand how and when to bid for a
foreclosure sale auction.
FACT: The property is publicly auctioned off to the highest
bidder and the procedure moves fast. You'll have to compete against the lender
and other investors.
Fortunate bidders often obtain unbelievable bargains far below
the actual market value of the property.
Bidders can achieve up to 35% savings off market values and earn
a fantabulous return on investment (ROI)
Sometimes bidders pay too much and later discover the property
is in bad condition.
I bet you can't tell me what one of the major disadvantages of
buying property at the foreclosure auctions is?
I will reveal that secret right now ... CASH is required, your
credit card is useless in this situation.
However, here's a major advantage of buying property at the
foreclosure auctions: junior loans and encumbrances are cancelled out.
What will you do if you don't have enough cash to buy at the
The solution is to buy after the foreclosure auction, but that's
covered in my NEXT article.How To Buy Bank Repossessed Houses For Big Profits.
Here are 5 major STEPS you should take if you want BIG PROFITS
NOW from foreclosure auctions:
RESEARCH properties prior to the sale date; find out everything
you can about the properties that interest you.
HUNT for real opportunities; seek those properties that really
interest you and you think will bring you the results you want to achieve.
DO the math; estimate the rates and possible profits if you
consider to bid at an auction for a certain property.
Be persistent and work SMART, not hard!
CHECK each bid price and determine how to earn a higher return
on investment (ROI). Don't panic, take your time!
Go to the auction and participate. Bid on the properties that
interest you and that you have done your research on.
REMEMBER - do your homework first, take the 5 STEPS above and
the sooner (rather than later) you'll succeed in foreclosure auctions.
Buying at the auction is your opportunity to GREAT property
discounts, so INVEST your money and time wisely.
Let me finish this article with 2 quotes, I found them very
interesting and useful:
1. Pierre Abelard - "The beginning of wisdom is found in
doubting; by doubting we come to the question, and by seeking we may come upon
2. William Saroyan - "Good people are good because they've come
to wisdom through failure. We get very little wisdom from success, you know."