Buyers Find Bargains at Michigan Foreclosure Auctions

by Simon Lindsay on States

If you are interested in buying a home but worried about being able to afford it, follow what the other budget-conscious real estate investors and home buyers are doing – participating in Michigan foreclosure auctions.

You may actually be surprised with the investment opportunities that these foreclosure sales offer. Most of the bids actually start very low. Of course, this is because many of the sellers – usually banks – are hoping to get rid of the property in order to avoid assign them to their already large inventories. Aside from this, they are also hoping to reduce holding costs that include insurance, taxes and maintenance fees.

With the many foreclosure properties sold at these auctions, there is quite a selection to choose from. You will need a good eye in order to separate the good ones from the bad ones though. In any case, you must try to set aside some money for repair costs since these foreclosure properties are sold “as is”.

One bidder, who attended a foreclosure auction at DeVos Place in Grand Rapids, was able to nab a home at 60 percent less than its current market value – from $209,000 to just $85,000. There were about 110 foreclosure properties auctioned off and the bidders were really excited about the prospect of grabbing a bargain.

In the last couple of days, several other foreclosure auctions were held. In Detroit, there were over 720 foreclosed properties being auctioned off in a single foreclosure sale, clearly showing that Michigan is indeed among the states hit hardest by the foreclosure crisis. There was a vacant lot sold for just $50 and there were homes bought for no more than $350.

If you are interested in attending one, it will probably be wise to learn a little about the foreclosure process and find out the local auction guidelines so you can come prepared. You should also make sure that you stick to your budget since you might get carried away with the excitement.