Bank Owned Auctions: Educate Yourself Before Bidding

It seems that everyone wants to buy foreclosure properties. This is not surprising, because foreclosure homes are the only real estate properties that are within the capacity of many people to buy due to their very low prices.

Real estate experts are swearing on how easy to get rich with properties that have been foreclosed because their owners defaulted on their mortgage payments. There is no doubt that there are great opportunities to be had in buying foreclosure properties. But even if foreclosures are the best investments in the market, you cannot expect to become successful overnight. If you want to do it right and do it successfully, educate yourself first about the foreclosure investing market.

The Auction Process:

One of the safest ways to buy foreclosures is at bank owned auctions. Why? Because the properties sold at bank auction are free of liens. But first, a little bit of background on how properties get to be called bank owned.

Owners of houses that are behind in payments and failed to work out any arrangements that can make their accounts current have no choice but to relinquish their properties to banks where they took out loans.

Banks consider foreclosure properties as non-performing assets. As such, they would like nothing but to sell these foreclosure properties immediately to recover their money to invest on other ventures. They will place these foreclosure properties on auction to allow interested buyers to bid on them.

Advantages of Bank Owned Properties:

For one, you do not have to worry that bank owned properties have unpaid taxes or other liens. Banks will make sure that all properties sold at bank auctions have clean titles. This means no encumbrances that may give reasons to buyers to turn their backs on the deal.

Banks do not want to have a long list of foreclosure properties on their portfolio. Clean titles and low prices are just some ways banks can attract potential buyers for their properties. Furthermore, you do not have to worry about overstaying tenants in bank owned homes. Preparing yourself before investing in foreclosures will make the process go easy and smoother.

Are Penny Auctions Or Online Bidding Sites Worth Your Time?

Should you participate in online bidding sites in order to find great deals?

Online bidding sites are becoming popular. I believe the reason for this is that more and more people are hearing about penny auction advantages. In fact, the largest online site collects around $25 million dollars a month in revenue.

Folks from all over the globe visit penny auctions and many participate hoping to land a great deal on products or services.

People are receptive to finding deals at online bidding sites because they can find bargains for 99% off retail prices.

Bid websites are able to offer these great discounts because the products being offered begin the bidding process with a price of only one cent.

One cent is confusing to many because one cent actually is representative of spending anywhere from $.50 to $1.00 per bid. An example of this would be me bidding on a television that the final bid would show the winner won the television for only $5.00 dollars. The real number should show that the television was awarded to the winner for $50.00 based on the television bids costing one dollar for each penny spent.

Each penny bid represents a dollar spent. For some sites you are fortunate to only have to spend $.50 per bid. This represents a great bargain.

Spending $.50 on bids {giving this example} will allow the winning bidder to get this television for only $25.00, plus taxes and shipping cost.

The bidding process with penny auction sites is similar to eBay, but with bid websites you must use bids. Bids are much like tokens. However bids are intangible products.

There has been criticism of penny auctions. The chief complaint is that there are several bidders for the one item being bid on,yet there can only be one winner per item sold. The problem is magnified because several people are spending anywhere from fifty cents to one dollar per bid hoping for the low price.

The remedy to this problem is easily understood with this explanation.

You can still get a great bargain by shopping the penny auction sites even after the bidding has ended. The prices are usually only good for a limited period of time; therefore you must hurry to purchase the item you wanted.

Usually the customer engaging in penny auction websites will more than likely bid on the products that they truly desired. This means that the online bidding site was worth using because you can find the product you want at a good price. And should you win the bid, you likely have gotten a great price. In additional to these benefits, I have found that the online bidding process is very exciting.

Recently I placed a bid on a 65 inch television and my heart was racing fast. The bidding process makes the adrenalin flow. It’s fun to do.