10 8th, 2009
There are countless reports now of people who are rushing to home auctions in order to pick up a house that was recently foreclosed on for 30% to 40% below value. It can remind a person of the gold rush in the late 1800’s as people rushed to the mountains in Alaska to find their fortune in gold. Foreclosure auctions is the gold rush of the early twenty-first century.
Buying a Georgia auction home that has been foreclosed on can be a good idea. There are many areas in Georgia where the current economic crisis has hit families hard, forcing them into foreclosure. All kinds of homes are now up for auction. They range from regular single family homes, to multi-family dwellings, to large expansive homes, to even waterfront homes with incredible views.
When a home goes into foreclosure, there is a certain amount of time that the current homeowner can contest the foreclosure and even stop it by paying the back mortgage. During this time you, as the potential home buyer, should be working out your finances, putting money in savings, making sure all your bills are paid, and even getting pre-approved for a home loan. You don’t just buy a Georgian auction home by bidding and then trying to get a mortgage.
There are several benefits to buying a Georgian auction home. In fact, it makes perfect sense to do so, if you can wait for the right home, are an investor, or are looking for a cheap home.
The first is that you can get a pretty good home for almost 40% under the actual value of the home. That means if a home is valued at $200,000, you can purchase it for $120,000. Maybe even less if the balance of the mortgage is less. Most lenders know they won’t get more than what is already owed on the home, so if the balance is less than that, you could get a great bargain.
Another benefit is that the seller is very motivated and may even help you with lower interest rates in order to move the property and recoup back some of its money. They don’t want to the home to become an REO, because then it could sell for even less. For anyone who is looking for a great deal in real estate, and can work with the foreclosure system, a Georgia auction home is a wonderful way to buy a home for yourself, or for flipping for profit.
