Most people are at least vaguely familiar with how to buy a house, even if they don’t know any of the details about how it works. There’s a For Sale sign, and a phone number to call. You visit the house and decide if it’s for you. If it is, you tell the agent, who prepares an offer and tells you what steps you need to take next. At some point, the sign is gone, and the house is yours. But, there are other ways that homes are sold, and auctions are one way that foreclosed properties are sold. These homes are owned by mortgage borrowers who have either defaulted on their mortgage or failed to pay their property taxes, and they are now being seized by lenders and/or tax authorities. How Do Auctions Work? There are a variety of different auction houses, and every one of them has their own rules. Even within one auction house, there may be a variety of auctions being offered. They must also conform to the rules of the state and municipalities in which they are located. Make sure you understand the rules of the specific auction you’re interested in before you bid. Types Of Auctions Auctions, whether in person or online, will be organized in one of three ways, and any single auction may deploy one or all of these types, depending on the property owner’s preference. Absolute Auction In an absolute auction, the highest bidder wins, regardless of the amount of the bid. You might bid $1 and win a house. Absolute auctions attract the most bidders because there is no minimum. This is also the preferred method of most lenders and government agencies. All sales are final, meaning there is no room for the seller to back out in the face of a too-low bid.
Minimum Bid Auction
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