House auctions offer foreclosed homes up at a reduced price, saving you big on your new piece of real estate. But before you consider buying a foreclosed home at a house auction, be aware of five.
The Atlanta Development Authority is training realtors and lenders about a program designed to help people buy foreclosed homes in targeted areas. The ADA has received $1.1 million in federal stimulus.
One popular way to find an affordable home is to buy one whose owners are being foreclosed upon. This means that a lender or lien holder is in the process of.
Bank owned foreclosures in inventory are called REOs, or "real estate owned."  Banks will give these REOs to asset managers, who will in turn hand them off to realtors. Realtors will then list these foreclosed properties and try to sell them like any other home.
It is more common to buy a foreclosure directly from the bank in a bulk sale purchase. In bulk sales, the banks will package a bunch of properties into one transaction and sell them all at once to one entity. That is the best way to buy a foreclosure if you can afford it because the discounts are typically the steepest.