Foreclosed property on auction.com

[Jared Luhman]

There is a neighboring house I would really like to buy that was foreclosed on. It has been listed and auctioned 3 times on Auction.com and doesn't ever reach the minimum so it doesn't sell. It now has it's 4th auction date scheduled. Does anybody know this process or when it will ever go to the bank REO site or HUD? Their minimum requirement is way higher than what the property is worth in it's current condition so I don't want to buy it on auction.

[Greg H.]

@Jared Luhman

The truth is it varies. I have seen properties on there for months before they disappear and the lender files a claim with HUD. My guess is if the market softening continues we will see many lenders make their claims sooner

Keep in mind, once the lender takes the insurance and the property becomes a HUD home, the property will be appraised and there will be really no correlation with the auction price higher or lower. The HUD property will also first be made available to owner occupants