how to buy at foreclosure auction

WHERE REAL ESTATE IS MOVINGWHERE REAL ESTATE IS MOVING™

© Auction.com | Confidential & Proprietary

RENT OTHERFLIP

Investment Strategies

Residential real estate investors have 2 primary strategies:

2

Buying to fix and sell or

wholesale immediately.

Buying to repair and rent or

maintain current tenant.

A very small % have niche

strategies.

Vacation Rental

OWC Finance

Farm…


Types of Residential Real Estate Investment Properties

Homes can be purchased on two sides of the foreclosure divide:

3

Foreclosure SaleShort Sale

Negotiate with the

lender and homeowner

to purchase for less

than owed to lender.

Purchase at live*

foreclosure sale (aka

Trustee Sale, Sheriff

Sale, etc.).

These homes have

gone through the

foreclosure sale

process and are now

owned by the lender.

REO Traditional

For sale by an

individual or investor

to be purchased

direct.

Pre-Foreclosure Post-Foreclosure

* In many counties in Florida, these sales are conducted as daily online auctions.

Differing paths to a common goal:

Profiting from the purchase of an investment property.

FORECLOSURE


Judicial and Non-Judicial Foreclosure Auctions

• Live auctions currently held in:

AZ, CA, GA, ID, MO, NC, NV, TN,

TX, WA

• No Auction.com Buyer’s Premium

• Judicial assets available to bid on

online in FL

• Additional states where Auction.com

markets foreclosure properties: AL,

CO, IL, IN, MD, MI, MN, MS, NJ,

NY, OH, OK, OR, PA, SC, UT, VA,

WS

• Value-Based Bidding

4

(1) Many opening bids are set to equal the outstanding loan balance, even if it’s more than the property is worth. However,

“Value-Based Bids” are set by the lender to more closely reflect the current value of the property, not what the past owner owes

the bank. Not all homes will have Value-Based Bidding, but those that do are priced to sell.


Foreclosure Third Party Sales Auction Map

Servicers maximize execution in judicial model states by leveraging investor demand

through efficient and transparent platform at Auction.com

5

Foreclosure Third

Party Sale States

Non-Active Foreclosure

Third Party Sale States

We are now in 29 states

bringing our signature

marketing and

transparency to an

otherwise closed market

which has increased

competition for the

assets and yielded more

sales at higher prices.

Expansion

AL

AZ

AR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KS

KY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NENV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

AK

HI


Value Based Bidding vs. Total Debt Bidding

Value-Based Bid Total Debt Red Total Debt Blue

6

The lender is expected to

submit a bid based on the

current market value of the

property and below the total

amount owed.

We mark these properties with

the red total debt banner to

indicate that the lender is

expected to submit a bid equal

to the amount owed.

The blue total debt banner

indicates that the lender is

expected to submit a bid equal

to the amount owed. BUT, we

believe that the amount is less

than the current value of the

property.


REO Online Auctions

What you should know

7

Auctions are conducted

weekdays online at

Auction.com

Registration is free. All that

is required is a small deposit

in the form of a credit card

authorization.

Some properties have a

Buyer’s Premium but many

do not.

Some properties may be

occupied and have no interior

inspection. These are noted

on Auction.com

Some properties are

financeable, others may not

be due to occupancy or a

needed repair.

Read and understand all due

diligence documents and

transaction details prior to

the auction.

%


Newly Foreclosed

• Posted just days after foreclosure

• Likely occupied

• May require eviction

• No interior inspection

• Not financeable, in most cases

• Not on MLS

• Broker co-op may be available

Types of REO Properties

Bank-owned properties:

8

Occupied

• In differing stages of eviction

• May be vacant

• No interior inspection

• Not financeable, in most cases


Vacant

• No longer occupied

• Open house dates on Auction.com

• Financeable, in many cases


• Institutional sellers motivated to move properties

• Most of these properties are unavailable anywhere else


MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

Southeast

Southwest

CA / NV

Northeast

Midwest

Pacific

Northwest/Hawaii

Special

Events*

Southeast

Southwest

CA / NV

Northeast

Midwest

Pacific

Northwest/Hawaii

Auction Regions – Auctions End on Weekdays

9

AL

AZ

AR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KS

KY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NENV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

AK

HI

WHERE REAL ESTATE IS MOVINGWHERE REAL ESTATE IS MOVING™

Auction.comHow it Works


Bid WinFind

How to Buy a Property on Auction.com

Auction.com enables you to find, bid and buy properties online

11

Search for properties that

interest you. Save them as your

favorites or sign up for alerts.

Once you find your favorite

property, register for its

auction, and get ready to bid.

If you are the winning bidder,

submit your payment and

documents to begin the

closing process.


Search Page

12


Property Page

13


Log into your account from the homepage

14


Email Notifications

• Choose cities of interest and types of properties you’d like. Once criteria are

set, Auction.com emails you listings that fit your criteria.

• Visit www.auction.com/email to learn more.

15

Benefits

Get newest listings

from Auction.com

emailed to you

every day

Choose only the

cities and property

types that interest

you

Be first to know

when and where an

auction in your area

will take place

1 2 3

http://www.auction.com/email


My Dashboard

When you sign up for an account you can track your saved assets, register for

an event, and monitor bid activity all through your dashboard

16


My Dashboard – Saved Assets Tab

What you can do from the Saved Assets Tab:

• Register for an event (A)

• Create a brochure (B)

• Download an asset list to excel (C)

• Get directions to the properties (D)

17

(A)

(B) (C) (D)


iPad

18


VIP Offering Summary

Just for registering for this webinar,

you are granted access to the

bi-weekly Auction.com VIP Offering

Summary. Here’s what it is:

19

• Bi-weekly data files of all properties

on Auction.com

• Custom groupings of properties

highlighting special opportunities

• Exclusive distribution to our top 1% of

multiple property buyers

• Use Excel to slice, dice and filter

• The #1 tool we provide our top

regional and institutional investors

• Look for an email next week with all

details on how to receive this

INVITATION ONLY property source!

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PROPRIETARYSOS ResiREO 11/13/2014

how to buy at foreclosure auction

Real Estate

foreclosure sale process

foreclosure divide

current value

markets foreclosure

valuebased bids

current market value

sheriff sale

traditionalfor sale