There are more risks involved with purchasing real estate through an auction (especially a foreclosure auction) than with standard home purchases. Some risk factors include:
Deferred maintenance or vandalism that may not be seen due to sight-unseen aspect of many foreclosure auctions
Large cash requirement
Need to evict current residents
Inability to get financing to purchase real estate even after you win the auction
In isolated cases with foreclosures, liens or other claims on the title, “clouded title” can impact the salability of the property
To best avoid these situations, be sure to research the property before the auction. With an MD Auctions membership, you will have access to deposit information, any notes on the auctioned properties, and contact information for the auctioneer.