Looking for cheap home today seems an impossible dream. But do not despair. There are some strategies to buy a home at bargain prices. The way is to take time to look for such homes by looking for information at Auction houses.
Why is there a home auction process? The process is there because of the emergence of cases where debtors assets are owed because of non-payments of debt – in this case the house, to the bank. It could also be a debtor who fails to pay an installment loan (mortgage).
Indeed, banks can not necessarily foreclose on the home or property that if the debtor had bad credit. Businesses that can be saved if the debtor to negotiates with their banks by selling their own property as collateral. If the house is sold, then some can partly to pay off their debts and if there are any money over, it stays with the owner.
The problem is, the house or property is not a liquid asset that can quickly be turned into easy money such as gold. It can sometimes take a long time until the house can be sold, although usually the bank will give a grace period to owners who need the immediate release of assets.
If the time limit has been determined that the owner still fails to sell his house, then the bank will ‘step in’ to sell it through an auction process. But in fact, the auction house option is also at risk for the bank.
Once again, selling it by the auction house process is not an easy option. There is a considerable time frame and costs involved. For example, it must be registered with the court, be advertised with the auction house well in advance of the sale date and so forth. Not to mention the bank is also prone to a lawsuit from the debtor if any step in the auction process is not completed properly. Because of this, price of the home when sold does not necessarily cover the debts of the debtor. Another thing is buying a home through auction must not be an alias for cash credit.
Meanwhile, from the owners, to bring the asset to the auction process is not a pleasant experience. Not only is there a loss of self-esteem because there is a signpost in front of the house saying ‘Home Seized’, but the auction process also makes it potentially a loss. This also could be the result of the auction price being far below the market price.
Well, there are certainly risks to avoid on both sides, both to the debtor and the bank. Hence, they should avoid the auction process if still possible. This is where a gap that can be utilised in an effort to find cheap homes.
Search for information only where the houses are in trouble. Then begin communication with the homeowner and ask if the house is in the process of auction. Just before the auction price, make sure the house that is targeted has already passed the appraisal process. When the value is set, try bargaining with the assessed price below below the appraisal – but do not let the owner know that you know this amount.