How Do Courthouse Foreclosure Auctions Work?
Courthouse foreclosure auctions sell real estate for two big reasons. If the property owner doesn’t make the mortgage payments or fails to pay the real estate tax, an auction is scheduled. The county courthouse serves as the website for most of the auctions in California. Auction details vary between the two kinds of forecloseure auctions. State and county laws and regulations put the rules for your own auctions.
Foreclosure Auctions
The lender contacts the property owner if the mortgage payments aren’t made as scheduled. If the owner doesn’t bring the payments current within 30 days, then the lender files of a Notice of Default in the county where the property is located. The owner has 90 days to produce all essential mortgage payments. If the payments aren’t made, the lender files a Notice of Sale and programs a foreclosure auction in 21 days.
Foreclosure Auction Details
In many nations, the county publishes the Notice of Sale in neighborhood newspapers for several weeks prior to the auction. The notice is also posted on the property and in the courthouse. The minimum bid in the auction is often the amount of the unpaid mortgage. Most foreclosure auctions are live auctions as well as the bidders must attend. The maximum bidder takes possession of the property after making full payment in the form of cash or certified funds. Payment is generally required immediately after the auction. If nobody gets the minimum bid, the lender requires ownership of the property.
Tax Foreclosure Auctions
When property taxes have not been paid for up to five decades, the county tax collector programs a tax foreclosure auction. Many times a date is set once a year for the sale of tax-defaulted property. Property owners may redeem the property by paying all back taxes and fees prior to the auction. If the taxes aren’t paid, the property is sold at auction. The minimal bid is often the amount of the unpaid taxes plus the expenses of the auction.
Tax Foreclosure Auction Details
The county prints lists of property facing auction in the legal section of local newspapers. The county often lists property information on the tax collector’s website and prepares a handout or booklet with maps and other real estate info. Some auctions are live auctions. Other counties hold online or sealed bid auctions. The successful bidder pays immediately following the auction. When the deed is recorded, the successful bidder takes ownership of the property.