How do foreclosure auctions work? The process is actually interesting, and it presents an opportunity for you to help out those in need in your community.
Today I’d like to share some of my real estate knowledge with you regarding how foreclosures—specifically, foreclosure auctions—work in your local community.
To begin, the state of Georgia is a non-judicial foreclosure state, meaning that when a home is in the foreclosure process or if a seller is delinquent on their payments, the state and the bank that hold the loan on the property don’t have to go to court to complete the foreclosure process. You simply need to send a notice and market the property in a newspaper or other public article for up to four weeks. Once you do, if the homeowner hasn’t worked it out with the bank by that period, the bank can actually go through with the process.
Assuming the homeowner didn’t remedy any of their delinquent payments, there are steps that you need to follow.
If you have the funds to do so, you can go to the courthouse steps where the property was “cried”—meaning the details of the property were read, the legal description was given, and they put the house up for auction—and bid on it. However, sometimes properties don’t get cried at the country courthouse. Sometimes the bank will buy back the delinquent loan instead of opening the bidding up to the public.
Sometimes the bank will buy back the delinquent loan
instead of opening the bidding up to the public.
It’s actually a pretty interesting process to see; I’d recommend taking a look in your area and seeing one in person, if possible. In Georgia, on the first Tuesday of every month, the county foreclosures are auctioned off at the county courthouses. If you would like to see a list of counties that are heavy with foreclosure traffic, click here. Fulton County is notably high-traffic in this regard; you’ll see all sorts of investors, hedge fund companies, and other buyers making cash offers on the foreclosure at the county courthouse steps.
We bring you this information today to help you build an area you love to live in. Those who are going through a foreclosure are in a tight spot, so if you notice a property in your area in danger of foreclosing, we have a network of investors who offer a wide array of solutions that genuinely help those struggling in the community.
If you know of properties like those, are interested in real estate investing, or have any questions, please feel free to reach out to me. Otherwise, stay tuned for our next episode, in which we delve more into becoming a real estate investor. Hope to hear from you soon!