How to Buy at Foreclosure Auction
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Transcript of How to Buy at Foreclosure Auction
WHERE REAL ESTATE IS MOVINGWHERE REAL ESTATE IS MOVING™
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RENT OTHERFLIP
Investment Strategies
Residential real estate investors have 2 primary strategies:
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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…
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Types of Residential Real Estate Investment Properties
Homes can be purchased on two sides of the foreclosure divide:
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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
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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
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(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.
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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
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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
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Value Based Bidding vs. Total Debt Bidding
Value-Based Bid Total Debt Red Total Debt Blue
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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.
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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.
%
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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:
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Occupied
• In differing stages of eviction
• May be vacant
• No interior inspection
• Not financeable, in most cases
• Broker co-op may be available
Vacant
• No longer occupied
• Open house dates on Auction.com
• Financeable, in many cases
• Broker co-op may be available
• Institutional sellers motivated to move properties
• Most of these properties are unavailable anywhere else
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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
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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
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Bid WinFind
How to Buy a Property on Auction.com
Auction.com enables you to find, bid and buy properties online
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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.
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Search Page
12
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Property Page
13
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Log into your account from the homepage
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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.
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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
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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
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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)
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(A)
(B) (C) (D)
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iPad
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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:
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• 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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