How to Find and Prepare for Foreclosure Auctions Near You

If you’re hoping to buy a house, you probably already know that you can get some sweet deals at a foreclosure auction. But you might be wondering — how on earth do I find foreclosure auctions near me, and how exactly does the auction process work?

Read on for details about the different stages of the foreclosure process (including the possibility of snagging a great deal during the pre-foreclosure stage, or after a home has failed at auction), how to find local foreclosure auctions, and what to do so that you’re prepared when you attend.

The stages of foreclosure

Foreclosure isn’t just an end state for a property; it’s a process with a few different points at which it might make sense for you to jump in as a buyer.

Pre-foreclosure

The owner is in default and unable to catch up on their mortgage payments, but the property is not yet up for auction.

Homeowners typically must be at least three months delinquent in order for the lender to send a notice of default, starting the pre-foreclosure timeline. This notice of default is often made public record.

The pre-foreclosure period can last 3 to 10 months. At any point during this period, the owner can pay off the debt and stop the foreclosure process. The owner may also opt to sell the house, possibly as a short sale with bank or lender approval.

Buying a pre-foreclosure can be beneficial to all parties involved. The homeowner who is delinquent on payments is able to get out of debt and avoid damage to their credit history. The lender avoids the lengthy and costly process of foreclosure. And the buyer has the opportunity to get a very good deal on the price.

Pre-foreclosures are not always easy to find, however. Your county recorder may post notices of default…or they may not. And a pre-foreclosure might come with some unexpected expenses, too: you may be responsible for unpaid taxes, property liens,  repairs, and renovations.