Cycle of Foreclosures?

[Seth Schaeffer]

Newbie here...so what's the life cycle of a house that goes to into Foreclosure? courthouse auction--->bank sells where?--->MLS?

I ask because I'm a huge fan of the 3ft rule and I talk to anyone I can about real estate (even though I'm hunting for my first deal) and a lady at my Bank was telling me about a property. I went to the courthouse, used a skiptrace, tried contacting the who I believed to be the owner with no luck, and then saw it the next week on the Auction list at Sheriff's sale. I don't know if it sold or not because I didn't have time to go and am not experienced enough to buy one there for my first one. 

What's the best way to find if it sold and if not, where it goes next?

Thanks!

[Ron S.]

the "Life Cycle" is state dependent, except for the first part. Nationally, no foreclosure, for payment default, can commence prior to the 120th day of delinquency.

I would find the time to attend the next sale. That gives you an idea of how the process works. It either sells, or reverts back to the beneficiary (The bank), each and every time. Some states have redemption periods, meaning the owner has a set amount of time to buy it back by paying the default amount/judgement amount/sale amount. If it sells 3rd party (someone bid on it), that party owns it and will do with it what they please. Occupy it, tear it down, rent it, flip it, etc.. If it doesn't sell and reverts back to the beneficiary, it becomes REO (Real Estate Owned) to the bank. They will rent it, tear it down, flip it, etc.. as well. If the bank gets it and sells it, they will sell it through a licensed agent. They may auction it. They may sell it in bulk with a group of other properties to an investor. That investor may rent it, tear it down, flip it, etc.. and the cycle continues on and on.

The best way to tell if it sold, is to be there at the sale.