Understanding Auctions

Where are auctions typically held?
How far into the future are Auctions available?
How many auctions are available?
Is every foreclosure auction a good deal?
How do I bid on a property?
Where and how do I pay for an auction?

Where are auctions typically held?

Property auctions are held at the county government level. Each county is unique, so understanding the rules within your specific county is important. Some counties hold their auctions in person only (at the county steps), and some are online based. Hillsborough county, Sarasota county and Pinellas County fortunately hold their auctions online allowing for bidders from different areas the ability to participate. After selecting a particular property you can visit the government website via the following links.
Hillsborough County Auctions
Pinellas County Auctions
Sarasota County Auctions
Register an account (the account will work on any of the three county websites). Within the foreclosure calendar section select the date of the property you have an interest in. There are a random amount of properties for auction on a given day, some only have a few, some days can have 80 or so. Since there is only 10 per page, use the tabbed arrow to go to the page that displays the property you have an interest in. Read the terms and conditions carefully of the county website. You will need to fund your account in order to make a bid. Specifics on funding and fees are available in their FAQ.

How far into the future are Auctions available?

Counties can release new auctions at any time in the future. Auction data can be avaiable as far into the future as 5 months. The bulk of new listings are generally 1-2 months in the future. Auctions can change status at any time. Auctions can become "cancelled" or "re-scheduled". "Active", is the default normal status in which the auction is moving ahead as planned and can be bid on. Give your self at least a month of time for a target property. Things like title research, and funding the account take time.

Is every foreclosure auction a good deal?

Not every foreclosure auction is a great deal, but many of them are. The bank that owns the mortgage has the right to place a minimum bid for the auction sale price. How the banks decide to place these bids varies from bank to bank. Some are likely to use a home grown algorithm that involves taxable value, estimated value, depreciation, general economy, general location, and recent sales. The banks do not always have enough time to visit the property, and are often very busy making quick decisions from remote locations. Your job is to find the deals. Find properties that are in better condition than the bank had anticipated, or may be repairable for a lower than estimated cost. It is widely known and accepted that due to this increased risk the prices are generally 30% lower than market value. During your research phase once you think you have found a good deal, you will need to be extremely aware of the properties full history. When you have found a target property order a title search from a title search company to make sure their are no existing Lien's on the property.

How do I bid on a property?

The bidding is done on the various government websites, such as...
Hillsborough County Auctions
Pinellas County Auctions
Sarasota County Auctions
Some notes about bidding...
- You need to find your account before you can make a bid. This can take up to 9 business days for the funds to settle, so give yourself ample time to get your account funded.
- You place your best and final bid, and the system will go around all of the investors adding on a small increment, whoever is left is the winner. For example
Bank minimum Bid : $25,000
Investor 1 max bid : $20,000
Investor 2 Max bid : $28,500
Investor 3 Max bid : $32,200

The winning amount would be Investor 3 at $28,600. The system uses a system called "proxy bidding", it will use the dollar amount of the second highest bidder 2 ($28,500) and add $100 to that amount to deliver the final final price for bidder 3.
*There are fees associated with purchasing at auction, get those details from the county website.
*100% of the remaining balance plus any fees to be paid off in person, the next morning, at whichever government building they specify. (these rules vary per county)
*If you do not win an auction, the county will send you your money back in the form of a check. It can take a week or so to get it back.
*You do not lose any money by losing an auction, there are no fees for trying to bid at auction.

Where and how do I pay for an auction?

(For Hillsborough County) If you are bidding for another county, please check that specific County's payment location. Final payment may be made with deposited funds or in person by cash or cashier’s check at the Hillsborough County Clerk of Courts’ Circuit Civil Division office at 800 E Twiggs St Room 101 Tampa FL 33602.