Buyer beware!

It’s perhaps the most important nugget of advice as it relates to investing in and/or buying foreclosed homes.

What you see isn’t always what you get, especially when distressed properties hit the auction block. Whether it’s a structural problem that costs thousands to fix or an encumbrance on the title that is virtually not fixable, foreclosures are inherently risky investments.

The Strand family, which purchased a deed at a foreclosure auction earlier this year for $96,000 cash, found out the hard way.

From the San Francisco Chronicle:

“Apparently, unbeknownst to us, Wachovia sold us a worthless second mortgage that was part of a piggyback loan made to the” previous owners. Both loans were originated, signed and recorded on the same date. Rather than foreclose on both loans at the same time, Wachovia chose to foreclose, market and sell the worthless junior lien, purporting it to be the real property, which is what we purchased.”

That’s right, $96,000 on essentially, a worthless note. The first mortgage, which was worth about $298,000, was later reclaimed by the lender after it failed to sell at a separate auction.

The good news is that the Strand family and the lender “negotiated a confidential settlement.”

Nonetheless, the lesson is clear: Do your homework! Sure, there are loads of great deals hitting the auction block every day, but there are also a fair share of land mines that have the power to blow up your bank account.

To be safe rather than sorry, the report offers up these helpful tips for bargain hunters:

• Engage a real estate attorney and/or a professional investor.
• Hire a title company to make sure there are no liens.
• Observe some auctions before bidding.
• Research the property history at the county recorder’s office or subscription websites like RealtyTrac and ForeclosureRadar.
• Be prepared to pay cash.
• Understand that the property has no guarantees on title or condition.
• Consider buying a bank-owned property instead.

For more detailed information about buying foreclosed homes at auction we recommend that you also check out “Outsmart Experts at Foreclosure Auctions and Win!”

Good luck!

Real estate auction sales have climbed 10 percent year-over-year since 2000, according to CNNMoney.com report, and the numbers continue to rise (14 percent in the first quarter of 2010) as the housing inventory keeps piling up.

It’s a billion dollar business … $17 billion in 2007 alone, to be precise. And that figure, too, will likely rise soon if it hasn’t already.

That’s because auctioneers are holding two or more auctions per day throughout the nation to keep pace. REDC, which is among the biggest companies in the real estate auction space, is on pace to exceed 520 such sales in 2010 — a 50 percent increase compared to just last year.

What’s the reason for the staggering across-the-board increases?

Les Christie explains:

“The biggest auction advantage is speed, of course: From first marketing to closing can be less than 10 weeks … There is such a huge volume of REOs on the market — 92,000 homes were seized in April alone — that banks are anxious to turn the properties over quickly. Rather than waiting for the local housing market, they turn to auctioneers.”

To check out the homes for sale at upcoming foreclosure auctions near you click here (REDC) and here (RealtyBid).

Another city, more happy homeowners.

REDC — one of the nation’s most reputable and successful real estate auction companies — unloaded more than three dozen homes this weekend at a foreclosure auction in Golden, Colo., according to CBS4Denver.com.

All in a day’s work for the auctioneer, which is among the best at getting distressed homes off the market and occupied at a remarkable rate, selling more than 13,000 properties so far this year worth about $675 million.

Impressive to say the least … and we’re not even at the half-way point of 2010.

It’s an efficient process that gets families into homes, eliminates vacancies and takes a financial burden off banks.

So it’s not surprising that all parties — and communities — embrace REDC wherever and whenever it rolls into a new town, says company spokesperson Brad Fields:

“It’s taking a process that is traditionally a little slower and being able to very quickly get buyers into the property and revitalize those neighborhoods and create homes. It’s a little bit different of a process, but one that buyers shouldn’t be afraid of.”

REDC allows buyers and/or their representatives to place bids in-person or online. The process is safe, easy, and compliant with all legal regulations.

To check out the homes for sale at the upcoming foreclosure auctions, as well as to see when REDC will be coming to a city near you, click here.

Classes meet every Thursday morning at the Palm Beach County Courthouse in West Palm Beach, Fla., at 9:30 a.m. ET. Call (866) 382-2439 today to reserve your spot!

One of our internal commitments is to our staff at Foreclosure.com. We actually take our employees to live foreclosure auctions at the Palm Beach County Court House in West Palm Beach, Fla., each week to teach them the foreclosure process.

This experience, which we offer to introduce new employees to the actual experience, as well as keep the topic fresh on the minds of our more experienced team members, helps them better understand the value we bring our subscribers. From customer service to human resources to programming, all personnel types from every department at Foreclosure.com are invited to participate in the weekly excursions.

NOW WE WANT TO INVITE YOU TO COME ALONG AND JOIN US!

Linda Yates, Director of Education at Foreclosure.com, is now conducting FREE auction education classes at the Palm Beach County Courthouse every Thursday morning. The class will teach you how to look up information on the properties for sale, then you will attend a live auction to see how the auction process works.

You’ll become a pro in no time!

So if you are ever in the South Florida area and want to learn the tips and tricks to finding a great home and/or make a fortune at foreclosure auctions then you need to give us a call at 1-866-382-2439 to make a reservation for the class.

You MUST have a reservation because class sizes are limited. Classes, which are again FREE to attend, are held from 9:30 am to 11:30 am every Thursday.

Hope to meet you on the court house steps real soon!

Chances are you’ve even wondered what it might be like to try it yourself, but never did anything about it because you didn’t know where to begin.

Well, we’ve got good news: Foreclosure.com and Williams & Williams have joined forces to show you step-by-step how to navigate and profit from the foreclosure process in an upcoming Webinar presentation.

“Outsmart Experts at Foreclosure Auctions and Win!” is a LIVE 60-minute Webinar training session that is set for Thursday, February 26 at 9 p.m. ET. To participate in — and register for — the FREE online instructional session CLICK HERE.

Elsa Lewis — Williams & Williams Senior Vice President of National Sales/REO — will explain in amazing detail the simple steps required to find, participate, bid and cash-in on the best real estate deals available in your area for the best possible prices.

Here are just some of the topics that Elsa will cover:

• Understanding the true value of real estate by conducting due diligence before bidding
• Complete knowledge of the auction process from A to Z
• How to obtain financing and spend next to nothing on a great home
• Where to find an auction near you
• Understanding auction language and bidding with confidence

This training course will increase your confidence in the auction process, providing you with tips, skills and knowledge to purchase discounted homes that are priced well below your budget. Knowledge is critical to outwit and outsmart the competition — become a master of the foreclosure mind game today and laugh all the way to

Register for “Outsmart Experts at Foreclosure Auctions and Win!” before it’s too late — it won’t cost you a single cent! Spots are limited and filling up FAST! CLICK HERE.

Webinars are LIVE educational sessions that let participants see, hear and interact with real estate experts right from their personal computer screens. In fact, Webinars are driven in part by visitor feedback and questions that are posed during the sessions. For more information and course offerings click here.

Real Estate Auction 101 … class is now in session!

Learn how to buy homes at foreclosure auctions for significantly reduced prices — whether it’s online or in a ballroom in your backyard — during this FREE 90-minute Webinar educational session.

“Ask Questions. Get Answers. FREE Foreclosure Auction Workshop” is a real-time Webinar presentation that is set for Wednesday, August 20 at 9 p.m. ET. To catch — and register for — the FREE instructional session CLICK HERE.

Elsa Lewis — Williams & Williams Senior Vice President of National Sales/REO — will take you behind the scenes and show you everything that you need to know to make informed and confident purchase decisions on discounted real estate up for auction.

Elsa will explain in terms that you will understand the simple steps required to successfully participate in a real estate auction. And she can make or save you thousands on your next purchase … she’s a foreclosure auction pro.

Elsa will go over these topics and more:

• What you need to register for a foreclosure auction
• What to look for before auction during property inspection
• How to bid at the auction without losing your shirt
• How to close fast and count your spoils

In short, this FREE Webinar will explain the simple steps required to participate in a real estate auction.

So join us LIVE and for FREE during the “Ask Questions. Get Answers. FREE Foreclosure Auction Workshop” Webinar on Wednesday, August 20 at 9 p.m. ET. It’s a rare opportunity to find out what to expect at a home foreclosure auction near you.

Webinars are LIVE educational sessions that let participants see, hear and interact with real estate experts right from their personal computer screens. In fact, Webinars are driven in part by visitor feedback and questions that are posed during the sessions. For more information and course offerings click here.