Buying a house in Mexico at auction is an idea that can cause anxiety in many potential buyers, but armed with the right knowledge about property auctions and buying a foreclosed property, it can be an excellent way to maximize your real estate investment. MEXLend offers an overview of what you can expect if you purchase a foreclosure.
Why?
A property ends up at auction for one of two reasons:
1) The owner has defaulted on his mortgage or 2) the owner has defaulted on his property taxes.
How?
Foreclosure auctions are generally overseen by a trustee hired by the bank and are often held in courthouses, while tax lien property auctions are conducted by a sheriff. The starting bid is often the balance remaining on the mortgage or it may even be lower to stimulate bidding.
The Benefits?
Buyers have an opportunity to purchase a home at a lower price than it may sell for if it were being sold via traditional channels.
The Drawbacks?
There are two major concerns about buying a house at auction. The first is that the previous owner had financial difficulties so the home may not have been maintained at a high standard. The second is that purchasing a house at auction requires that the purchaser have a significant amount of cash ready as they will need a cashier’s check for the amount of the minimum bid on the property and be prepared with a down payment, as well.
Are you interesting in purchasing a home in Mexico at auction? Contact our expert mortgage financing in Mexico team to learn more about various ways that you can secure a home loan to purchase your dream property.
