I recently attended my first trustee sale on the King County courthouse steps. The house next door to us, that has been vacant for a couple years was scheduled to be auctioned. My husband and I were curious as to who might be purchasing the property and I’ve always wanted to see what happens at a foreclosure auction.
On the day we were there, over 50 homes were set to be auctioned. The bidders were mainly professionals who were hired to bid on behalf of the buyer. A majority were looking for homes to flip for profit. The house next door did not receive any bids and therefore, it’s been transferred back to the bank.
One thing that struck me as we left the auction was that with homes that completed the foreclosure process, either by being sold with a winning bid to a new buyer or being deeded to the bank, there are 50 or so people who will be able to buy a home again in just three years with a minimum down payment using an FHA mortgage.
People who have lost a home due to foreclosure or a short sale may qualify to buy again three years from the date the property transfers out of their name using an FHA mortgage. They will need to have re-established credit and will need documentation showing the date the property transferred out of their name. Deeds transferring title are public record and often easily obtained on-line. Here is my e-book on buying a home again after a foreclosure or short sale.
If you have had a short sale or foreclosure, my team and I are happy to help you with your next home. I recommend getting started with the process as soon as possible so that you can make sure you are making the right steps with your credit to help rebuild. If I can help you with your mortgage needs to buy a home located anywhere in Washington state, please contact me.