Everywhere you look your hearing about how hot forecloses are right now. If you’re looking to buy a Dallas foreclosure either as your primary residence, second home, or as an investment property… snatching up a foreclosure provides such a great opportunity.

By opportunity I mean you have the chance to purchase a property that comes with a lot of equity. It’s like getting free money.

Now when I talk about purchasing a foreclosure I’m referring to purchasing them either at the auction or as a REO property. REO stands for real estate owned. This simply means that the bank has bought the property back and owns it. This is usually when you see it listed by a Realtor and after the foreclosure sale.

The best time to buy a foreclosure is generally at the foreclosure sale. This is also one of the more difficult times to purchase the property because in order to do so you need to have immediate money or financing.

Financing is quite hard to obtain in just a couple of hours. You usually have between one and four hours to pay for the property that you just bid on and won. If you do not, it goes back to be auctioned off. This is why it is critical to get cash lined up for the sale. This can be your own cash, line of credit, credit cards, or private funds.

The process in any county in and around Dallas will go something like this: homeowner gets behind on payments, the bank will notify them that they are going to be foreclosing on the property and the date will be set, the information is made public, the property goes up for auction and is either bought by a person bidding or back by the bank for around the amount of the loan balance.

If you want to be a player at the foreclosure auction, then once the information goes public via newspaper or with the county clerk’s website you need to get the information and do the necessary due diligence about the property.

Determine your maximum purchase price based on your ability to get funds and your intentions with the property. Repeat this process until you find a couple of properties that you are interested in and it makes sense for you.

Some important numbers to know are what is the initial starting price, how much repairs as a property need, how much are the taxes, what the property will be worth in excellent condition, and if there’s other liens against the property that will still be in place after you buy at auction.

At the auction be prepared to put down a deposit in order to bid on the property in the form of a money order or cashiers check. Check with your local city in order to find out how much you need. Have your immediate funding in place so that you are ready to purchase the property after your winning bid.

Be aware of your maximum bid price and do not exceed it. There are always be more auctions and more properties so don’t feel that this is the only deal and that you have to purchase it. Stick to your guns.

Once you pay for the property you will own it. Now be careful and pay attention to what Lien you paid off at auction. If it was a lien that doesn’t put you in first position then you may not own the property free and clear.

Doesn’t mean you’re not getting a great deal it just means the property still has a lien against it that you have to pay off. If the lien was a first mortgage or a tax lien then you should be fine but still double check.

If all of this sounds a bit overwhelming don’t worry. We have even better deals than you can get at auction right here on Buy DFW Auction Homes. With no hassle too. Check back with us often to see what new easy to buy properties we have available.

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