      
 Proxy Bidding Helps Win Foreclosures AuctionsPublished: Thursday, June 04, 2009 Proxy bidding allows buyers of foreclosed homes at real estate auctions to enter their maximum bid amount and then monitor the bid results without worrying about being outbid at the last minute. Similar to placing a bid on eBay or other online auction homes, a proxy bid process for real estate auctions requires that the bidder set their maximum bid amount at the time they place their initial bid online. As other bids are received, the auction house will automatically bid for the proxy bidder, up to their maximum amount. Benefits of Proxy BiddingThe most important benefit to proxy bidding is that it allows a bidder to enter a bid just once, yet protects them from being outbid by bidders that come along later who have lower maximum bids. For example, let's say you are interested in one of the many Temecula foreclosures currently on the market and available at a foreclosed home auction that is being conducted online. Your maximum bid is $200,000 but the opening bid is only $15,000. You place an opening bid, and set your maximum bid at $200,000. Only the current bid amount, $15,000, is visible online to other bidders. Then, a second bidder comes along and sees the current bid is $15,000, and they have a maximum bid of $150,000. They bid $20,000, topping your bid. If you had set a proxy bid with a maximum of $200,000, the online system would automatically bid again for you, raising the bid to $25,000, and so on until the second bidder is outbid by your higher maximum bid. If no one else enters this particular auction, you would be the winning bidder at $155,000. If you did not have a maximum bid set and did not participate in proxy bidding, you could be outbid at $20,000, even though you know you would be willing to pay up to $200,000 for the home. This method of online bidding is convenient and effective at managing your foreclosed home auction bidding. With hectic schedules and perhaps multiple bids occurring at the same time, convenience is something every bidder can appreciate. By placing a proxy bid, you guarantee that you will not be outbid just because you failed to check the status of the real estate auction often enough. You can place your bid once, and then forget about it until the home auction closes. Not every online auction allows proxy bidding however. Be sure to check the procedures and regulations affecting your particular foreclosed home auction before counting on a proxy bid. If you are bidding on multiple properties and are limited in your available financing you might also consider bypassing the proxy bid option so that you can be assured you won't overbid. Now is a great time to purchase Southern California foreclosures at a real estate auction. Record low prices and modest interest rates are helping more buyers than ever find perfect bank homes and successfully close the deal! Other Recent ArticlesHome Buyer Tax Credit Extended Until April, 2010Category: Recent Articles Published: Thursday, December 10, 2009 The federal tax credit has been extended to April, 2010, including an expanded benefit to existing home owners who sell their homes and then repurchase a new primary residence valued at $800,000 or less. This could be the perfect opportunity for buyers who wanted to cash in on home auction bargains but were fearful of lower resales on their existing homes. 57,000 Foreclosures Remain in California – Lenders Scheduling More Home AuctionsCategory: Recent Articles Published: Thursday, December 03, 2009 The Southern California foreclosures market may be shifting, with fewer homes entering foreclosure than in previous quarters. However there are still 57,000 existing foreclosures statewide that need to be sold, and lenders are looking at foreclosed home auctions as a major tool to sell large numbers of foreclosures in a short amount of time. Southern California Foreclosures Still the Bulk of Home SalesCategory: Recent Articles Published: Friday, November 27, 2009 Southern California foreclosures still account for the bulk of area homes sales and lenders are finding real estate auctions the fastest and most efficient method of clearing their books of REO properties. Buying a home at auction requires a little prep work, however and the experts at homeauctionexpo.com share their insight on how to find the best auction properties. |
