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There are many things to consider when buying a foreclosed home at auction. These considerations include the price, necessary repairs, and the down payment required. You cannot place a bid on a home without a deposit of at least 10% of the sale price.

Home foreclosure auctions sell homes that borrowers were unable to make payments on. In most cases, these homes will be priced at well under the fair market value. Visit the home you’re interested in before bidding to avoid making a poor decision.

Some lenders require the home to start out at a price that will be at least 80% of what the loan was defaulted on. This price may be far lower than the actual market value. If the borrower owed more than the market value on the home mortgage, the home will be priced higher accordingly.