Before an individual bids on real estate at any public auction, there are numerous things that they should know. Some of the more important involves understanding the process from beginning to end. Starting with the facts that surround the actual loss of the property, and ending with the winning bid at the auction.
This said, when a homeowner does not pay several mortgage payments within a specified period of time, foreclosure proceedings will begin. The timeframes for these proceedings will differ since every province has their own legal requirements. The homeowner will also have a chance to stop the foreclosure process if they find the financing to pay due up-to-date.
Contacting the Trustee and Researching the Title
For those who are interested in the foreclosure property, they should look for the date that the property is schedule for auction. In the interim, however, they may be able to purchase the property from the owner if they are willing to sell. On the other hand, when the owner decides to hold on to the property until there is no recourse, the property will be sold at auction.
If an individual is still interested in the property, they will need to attend the auction in order to make a bid. The bidding process is relatively simple. However, there is some work to do before its scheduled date. One in which involves contacting one of three sources (i.e. the clerk of the courts, trustee of the property or an attorney) to confirm the auction date because it can be cancelled or postponed.
In addition to confirming the auction date, the individual should check the title of the property for any liens that may be attached. These liens may be attached to the property in specific successions (i.e. junior liens, senior liens,). Therefore, it is best to know what debts are tied to the ownership of the home including any repairs that must be made to the property.
Be Prepared for the Auction
If the person has not been to an auction before, they may not be aware of the province's requirements for paying for the property that they bid on. Typically, those who bid must have cash. For instance, the cash may be presented at the auction in a cashiers check, Based on the guidelines, the person who bids must also have a certain percentage on hand with the remaining being due in 30 days. It is also important to note that buyers have one of two opportunities to bid on property, and they include Pre-Foreclosures (NOD, LIS) and Bank Owned (REO).