Denver Foreclosures: Part II

HOW TO BUY A HOME AT A PUBLIC AUCTION

According to recent statistics, approximately 9,300 housing foreclosure filings were submitted in the first quarter. This record number pushes Denver towards a projected 25% increase in foreclosures by the end of 2007.

Foreclosures can be a great bargain for first time buyers or investors. And with a little bit of research and due diligence, it’s relatively simple to buy a foreclosed property. In Denver, public auctions of foreclosed properties are held at the W. E. Webb Municipal Office Building every Tuesday at 10am except when bank holidays fall on the previous Monday.

In order to bid, register with the Public Trustee prior to the sale. A registration form can be obtained from www. Denvergov.org and must be submitted prior to 9:45am on the morning of the sale, along with certified funds. Funds must be a minimum amount of $1.00 over the foreclosing lender’s bid. A list of sales bids is typically available online on the afternoon prior to the auction. If the bid amount is higher than the amount tendered, the successful bidder shall have until 2:30 p.m. the same day of the sale to return with additional funds.

Buying a foreclosure at a public auction is not for the faint of heart and is not without risks. Here are a few details to keep in mind:

• Establish relationships with a real estate agent, mortgage broker, real estate attorney and home inspector before you start the process
• Consider your personal finances, and evaluate if you’re able to afford the risks
• You may not be the winning bidder. Be prepared for companies or hardcore investors to outbid you.
• More than likely you won’t have an opportunity to inspect the home before the auction
• Be prepared for the home to require maintenance, repairs and installation of new appliances

Buying a home at a public auction can seem daunting, but sometimes the greatest risks reap the biggest rewards. If you have questions about buying a home at a public auction, give us a call and we’ll be happy to steer you down the path toward a fantastic deal!