Get Foreclosure Help - Avoid Foreclosure

Hearing that a home is going under foreclosure leads to ideas of the government rushing in to grab it up, throwing the people out. We are all well aware that not paying our mortgage will lead to a bank foreclosure, but few understand that the government can take over everything from home to boats and cars. For example, if you owe a lot of back taxes or default on a veteran’s assistance loan, the government can foreclose on your property.  Usually the property will be sold at a government foreclosure auction, but there are times it may be handed over for social programs instead.

Basic Operations

Finding government foreclosure auction listings for free is rather easy these days. There are paid services, but there really is no point in paying for what is widely available for free. The simplest way is to find the U.S. Department of Treasury website and find their listings. There are many listings beyond homes here as well, including vehicles, boats, office equipment and even rare items like books.

State Dictated Procedures

Government foreclosure auctions are a little more complicated than the usual auction where you show up and raise your hand, pay and immediately take the item home.  It’s more like an eBay auction. The procedures of how and when you place a bid will depend which state you live in. In some states, you only need to bring ten percent of your bid with you in order to win, but in others you need to bring the full amount of the property. That is a big difference so you must know your state’s guidelines before participating.

What About Caveat Empor?

One of the disadvantages of any kind of real estate auction is that once it’s yours, you can’t back out of the deal. Before bidding on a government foreclosure auction, you must find out as much vital information on the property as possible. You will have to find a way to verify the condition of the property in question on your own.  Since some properties may still be occupied, it can be difficult to inspect the property.

If you really want to purchase a home that is still being occupied by the original owners, you can make a deal to buy the property before it is sold at auction. Buying in this manner will stop the government foreclosure auction which is also an incentive to the homeowner. You must first contact whatever broker is handling the auction in question. You will have to consult your state law to know how to proceed with this purchase.

Thankfully, the government does not directly handle government foreclosure auctions. If they did everything themselves, nothing would ever make it through the process. Brokers and real estate agents within the state of the property are responsible for overseeing the auction and making sure it is done correctly.