Many buyers are interested in learning more about the process of purchasing a foreclosed home. With a number of these properties currently listed and the prelist inventory growing, these homes have become significant in our market. Over the last few years, many of the banks have turned to auction companies in an effort to market their inventory. There are many homes for sale in Gulfport, Long Beach, Pass Christian, Biloxi, Bay St Louis, and all across the Mississippi Gulf Coast that are now on the “auction block”.
The difference in a foreclosed home that is listed on auction is mainly how offers are processed. Auction homes request that the buyer submit the offer directly through the specific auction website. In many cases, there is a buyer premium involved and a credit card number required to bid.
A buyers premium is an amount added onto the final price as a convenience fee for the auction. The premium is immediately held against your credit card but the charge does not go through if you (1) do not win the bid or (2) successfully close the sale. You will be charged the amount on the closing statement and it will be added into the full amount that is due from you, but your credit card will not be charged. In some cases, there may be other reasons, but this is the norm. The credit card is to “hold” the home for you and ensure you have funds to cover the premium. Remember, the premium is not the earnest money. Earnest money will be required in addition to the buyers premium.
Auction home listings do allow for the buyer to have real estate representation. This is recommended as some of the in’s and out’s are better serviced by a professional that is working for you!
I have extensive knowledge from both ends of the foreclosure spectrum and would be glad to answer any questions you may have. Contact me for answers to your auction and foreclosure questions today!