*UPDATED 9/16/2022 with a new date(s) for the auction. See new dates below.*

Is the housing market getting to the point where you think that you will never be able to afford a home? While a turn key ready home, might not be in your future, how about one that could potentially need a great deal of work?

How about a home that for whatever reason, is now a part of a tax foreclosure auction? Yes, there are a few things to know before you even bid on one of these homes, but could this be a chance for you?

What to know before you bid on a foreclosure auction home or property?

Auction sign, outside suburban home, positioned on front lawn.

What to know? There is a lot. First, you need to read the fine print. The biggest thing? You need to bring money, there isn't a 'let's wait around and get a mortgage' for these properties. You will need to show proof of funds when you register for any property auction.

Then when it comes to the actual bidding? You will need to be able to pay for the hammer price of the property (what the auction goes for) plus any fees, taxes or previous liens that had been on the property. Think that's it? Nope, you will also have to pay a buyer's premium, which can be anywhere from 15%, 18% or maybe even 20%. It all depends on the auction company. This is one of the ways that the auction company gets paid.

What should you do first if you want to bid on one of these foreclosure auction properties?

New York Houses
Howard Hanna Real Estate via Facebook, M. J. Peterson Real Estate via Facebook, The Crane Group via Facebook, Canva

You should always do your 'due diligence.' In addition to doing at least a 'drive-by' of the property, you should call the town clerk where it is located to see if there are any other liens in addition to the tax lien, as you will be required to pay them, in addition to what you pay for the property. You should also expect to pay the transfer fees, title fees, and a few other fees. So, depending on all of the 'fees' you will want to keep the fees in mind (including the buyer's premium) when considering just how much you want to put out of pocket for the property.

Can you visit or inspect the property prior to the auction or the bidding?

Stockton, CA Leads Nation In Rate Of Foreclosures
Getty Images

It really comes down to, "Are the properties currently occupied?" Are they safe to have people walking through them? There will be notes on the property listing, that say if and potentially when the properties can be inspected prior to the bidding. Some properties will never be available to be inspected before bidding.

How can you learn about the tax foreclosure auction process?

The auction company that is holding this auction, also has an informational bidders seminar, that it is recommended that you watch or join in on. There is great information, that would help you not just with this auction, but with auctions of this nature in general.

If you are interested in the Sullivan County New York foreclosure auction, you will need to have all of the above done before the bidding begins, plus you must be registered in advance to bid. Registration for this round of auctions ends on 11/14/2022 at 4 PM. The bidding for the properties will take place on two days, 11/16 and 11/17/2022. For more information, you can click here for the auction catalog pdf. 

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