Foreclosure and auction purchases can offer low prices, and they can offer expensive surprises. You often buy as-is, with limited ability to inspect, and with title and possession questions that a normal sale would have settled. The investors who succeed do a lot of homework before auction day.

Ways to buy distressed property

• Pre-foreclosure: buying directly from an owner before the auction, which is a negotiated sale
• Auction: the lender’s sale on the courthouse steps, which in Georgia is typically held on the first Tuesday of the month
• Bank-owned (REO): a property the lender took back and now lists for sale
• Short sale: a sale for less than the mortgage balance with lender approval

Before you bid at auction

• Confirm the sale date, time and place with the county or the foreclosing attorney, because they can be postponed or cancelled
• Run a title search. Other liens or claims may remain on the property.
• Understand the payment requirements. Auctions typically require certified funds, and you may have very little time to pay.
• Check whether the property is occupied, because removing occupants takes legal process and time
• Drive by, check the condition and the neighborhood, and budget for repairs you cannot see
• Set a maximum price and stick to it

Why an attorney matters

Georgia foreclosure sales have strict procedures, and a mistake can cost you your deposit or leave you with a title problem. Have a real estate attorney review the property and the sale before you bid.

How we help

We look at distressed properties regularly. We can help you pull comparables, estimate repairs and decide whether a deal is worth the risk. We also work with owners facing foreclosure to find solutions, which is how some pre-foreclosure opportunities begin. We work across Atlanta, Brookhaven, Decatur, Duluth, Ellenwood, Griffin, Hampton, Lawrenceville, Lilburn, Locust Grove, McDonough, Norcross, Snellville, Stockbridge, Stone Mountain and Tucker.

Nil Patel is a licensed Georgia real estate salesperson with Keller Williams Realty Atlanta Partners. This page is general information, not legal, tax or financial advice, and nothing here is a commitment to lend. Talk to a lender and a real estate attorney about your own situation. Investing involves risk, and past results do not guarantee future results. If Nil, a team member or an affiliate wants to buy a property directly, that buyer will say so in writing before you sign.