Online Property Auction Site For Real Estate Buys

Investors who want to buy distressed real estate properties can do so from the comfort of their own homes by visiting an online property auction site. Due to the current economic situation, many municipalities have had to repossess or put liens on houses and land because of delinquent taxes. Owners of real estate properties have legal obligations to pay taxes to their county treasurer. When they don't, the community suffers and action must be taken.

Auctions are held for buyers and sellers to participate in a process where goods or services go to the highest bidder. This method of buying goods has been around for eons. In fact, there are reports that this technique was used by the Romans during the days of the Roman Empire. After a military battle, the victors would sell off the spoils of war in this manner. The Roman Empire officials also sold off the belongings of debtors to pay off their debts.

Many items have been auctioned off over the years. Typical goods and services that have been sold include cattle, cars, jewelry, art, and much more. Today, distressed real estate properties and land are sold through auctions. These auctions may be held on county courthouse steps, in ballrooms, in kiosks in a community's government buildings, or online through an Internet property auction site.

There are multiple ways to bid in auctions. A classic way is an auctioneer who stands in front of a crowd of bidders and introduces each item as it comes up for sale. Buyers will typically have done their homework in order to know what they want to buy and for how much. The goal is to acquire goods and services at the best price. Bids may be placed by calling out the numbers, raising a signaling device, or punching a keyboard in the case of an online property auction site. If a buyer was planning to buy a house or piece of land, he or she will have performed due diligence before the event.

When items come up for sale, the bidders compete for it by placing bids and the highest bidder wins. In delinquent tax sales, the winner must have the funds readily available and be ready to pay cash and take possession. Unlike other real estate buys, there will be no financing or inspection period. If the person who placed the winning bid doesn't have the funds, it will default to the next highest bidder.

Investors or buyers looking for a good deal in properties can find them in various ways including through an Internet property auction site. A wise buyer will do his or her homework before the sale. When the desired item comes up for sale, the highest bid will be the winner.

Non-recourse Mortgage States And Anti-deficiency Statutes And How It Affects You As A Property Owner

If your property is located in a non-recourse mortgage state, and if you default on the mortgage, the lender may not sue you for the deficiency if the foreclosure does not generate enough proceeds to repay the loan.

Non-Recourse States include:

Alaska, Arizona, California, Connecticut,

Idaho, Minnesota, North Carolina,

North Dakota, Texas, Utah, Washington

However, each non-recourse state has its own anti-deficiency laws that prohibit lenders from seeking deficiency judgments. In some states, the statues only apply to certain loan types. For instance, in California, the laws only protect the borrowers with the "purchase money" loans. This means that the loan must be used to purchase the property. Therefore, mortgage refinances does not meet the requirement.

Most states' anti-deficiency statutes also protects only homeowners, which generally mean the properties were occupied as primary residence at least six months prior to foreclosure proceedings. Better news for Investors or second home owners - some lenders don't pursue judgments all together in non-recourse states. It does not worth the resources (attorneys, staff, offices, etc) for lenders to take few investors and second home owners to the court.

Foreclosure or a trustee sale, as compare to short sale, may also reduce your chance of being sued in non-recourse states. This is especially true in "One Action States" (or "Single Action States") which will be discussed in more details later.

In summary, you are best protected when your property:

- was located in one of the non-recourse states
- was a primary residence
- loan was the original purchase loan (not refinanced)
- was foreclosed (trustee sale)

The best advice we can give now is to seek professional legal help that is specific to your state and your situation; And always negotiate away deficiency judgment with your lender before proceeding.