Buying at foreclosure auctions — both sheriff sales (judicial) and trustee sales (non-judicial) — can yield significant discounts but carries substantial risk. Auction purchases are typically "as-is, where-is" with no contingencies, no inspection period, and no title insurance. You buy the property subject to all senior liens (property taxes, IRS liens, senior mortgages) and must evict occupants. At Dream Financial Management, we provide pre-auction due diligence and post-sale negotiation services nationwide since 1994.
You're buying a lawsuit — not just a property. Auction properties can have: undisclosed liens, code violations, eviction holdouts, title defects, environmental issues, and hidden physical damage. You can't inspect before bidding. You must pay in cash or certified funds immediately or within 24 hours. There is no financing contingency. Know what you're bidding on before you raise your hand.
Conducted by sheriff or court officer. Bidding starts at the judgment amount. Property sold to highest bidder. Redemption period may apply (6-12 months in some states). Sheriff's deed issued after redemption expires. Defects harder to challenge.
Conducted by trustee named in deed of trust. Bidding starts at opening bid (lender's credit bid). No redemption period in most states. Trustee's deed issued within days. Easier to challenge for procedural defects.
Dream Financial Management provides title analysis, occupancy verification, cash-for-keys negotiation, and eviction coordination for auction buyers. Since 1994. Free consultation.