Posts Tagged ‘Massachusetts Foreclosure’

Before a property becomes a Massachusetts foreclosure for sale, the final step in the foreclosure process is the auction of the property. The biggest advantage to purchasing a property at the auction is there is the great potential to make high profits in a resale of the property. This is particularly the case if there is a large difference between the value of the property and amount the property is sold for on auction. This means there is the potential for the investor to win really big. The biggest cash rewards come in when the investor knows exactly what they are doing when taking risks using this investment method.

Generally speaking, auction sales are advertised from 4 – 6 weeks in advance. In some states it could be as much as 6 – 8 months. In instances where the auctions sales are advertised so far ahead of the time, it gives the investor ample opportunity to research the condition of the property, the loan and the home owner. You might ask, why the home owner? This is important if the investor wishes to work out a deal with the home owner before the property becomes a Massachusetts Foreclosure for sale by the bank, if the bank should bid for and win the property at auction.

If the investor manages to meet with the home owner and still cannot work out a deal, they will at least have had an opportunity to check out the property and see what kind of condition the property is in. this allows a competitive advantage over all other bidders at the auction.

It is advisable for an investor to attend a couple of court house auctions before actually going to bid on the property he desires. A familiarity of the process that takes place is always an advantage if the investor decides to try to bid for the property on auction date.

Generally speaking there is not a great deal of competition for property being sold at the auction and this can create a good opportunity for a diligent investor. Although it is always wise not to bid on an unseen property if the bank of lender is not there to bid on the same property.

Disadvantages include huge risk taking for those investors who have not conducted the correct research. There are many horror stories around of investors with insufficient knowledge, losing their shirts and their money in deals such as this.

Successful bidders might also have to evict tenants and this process could take several months. It interferes with plans to make repairs and quickly sell the property at a good profit. This kind of delay will increase carrying costs and eat into profits.

If you are unable to inspect the property prior to bidding on auction it is virtually impossible to asses what the market price of the property might be. This leaves it virtually impossible to calculate what your maximum bid and profit margin might be.

Foreclosures in Massachusetts Top Counties

• Worcester County
• Essex County
• Middlesex County
• Plymouth County
• Bristol County
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