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Foreclosures are one of the most important parts of the home selling process in Tennessee and all over the United States. If you’re interested in buying a foreclosed home or are faced with possible foreclosure of your own house, then you’ll want to know what a Memphis foreclosure auction is all about.
First off all, it’s important to note that this information is pertinent to the Memphis foreclosure auction in particular. Shelby County, Tennessee has its own set of methods for sheriff’s sales, and that process will be different in other parts of TN and certainly in other parts of the country.
The foreclosure auction process in Shelby County, TN
Foreclosure auction is a process by the government where it sells seized and abandoned property to the highest bidder. Foreclosed properties are typically sold at public auction, which allows citizens to take advantage of prices that would be unavailable at private auctions. A foreclosure auction can go by lots of names, including a sheriff’s sale or a tax sale. This kind of real estate listing or tax sale takes place as part of the Shelby County foreclosure process, and it goes for commercial as well as residential real estate.
The foreclosure auction process in Shelby County, TN begins with an assessment of the assets and liabilities of the property. This includes evaluating any liens or judgments against it, as well as calculating its market value. After this initial evaluation is complete, bids are placed on each asset according to its estimated value. The government then assigns a price based on these bids, and proceeds to sell off all of the assets in the auction one-by-one until everyone has had a chance to buy them.
Tennessee is a non-judicial foreclosure state, so foreclosures aren’t part of the court system. Rather, foreclosures take place without the mortgage holder having to do any time in the courts. A tax sale or foreclosure auction in Memphis is part of an outside process. In Tennessee, an attorney holds the sale in a public place, and this can be in any number of locations in Shelby County. The Chancery Court Clerk & Master’s Office oversees tax sale proceedings in Memphis.
For almost a decade, tax sale or foreclosure auctions have been held by online auction in Shelby County. The online auction model involves everyone logging into a secure site. You can register with an email address.
This process provides people with access to high-quality homes that they may not otherwise be able to afford due to their distance from Memphis, their size, or their condition. It also helps Shelby County and the City of Memphis recover some (if not all) of their lost tax revenue from foreclosures by reaping profits from a tax sale before taxes are assessed.
How much do you need to buy a home in Memphis?
Foreclosed homes in Memphis cost considerably less than other houses The average home price in Memphis is $175,000. However, this number can vary a great deal depending on the location and type of home being purchased. In general, it is typically more expensive to buy a home in Memphis than in other parts of the country.
Foreclosed homes still require a downpayment. This is set by the office in Shelby, and it can change over time. In order to buy a foreclosure, you need to have a percentage of the final sale price available on the day of the auction. Otherwise, your being the highest bidder won’t make much of a difference in you getting the listing at a tax sale or foreclosure auction.
The best way to buy a foreclosure in Memphis
The best way to buy a foreclosure in Memphis, TN is to look online for the next foreclosure sale and then head on out if the properties listed look like they might interest you.
It’s worthwhile to check out a property in person if possible before you go to a Memphis tax sale. Auctions are held all year long, from January to December, you and you’ll find a wide variety of square footage, acres, and features in the listings. Participating in an online auction is a great way to get a home with unpaid taxes or that the owner has defaulted on without having to leave home.
Note that with the online tax sales model, you don’t have to physically be in Memphis in order to go to a tax sale. You can do this process from anywhere, though obviously there is something worthwhile about being local. You’ll find a list of properties that are up for tax sale on the Shelby County website, or you can look online for Memphis foreclosure listings to find what you’re looking for.
The best way to buy a foreclosure in Memphis, whether it’s something high profile like the Oak Court Mall or something less prominent like a single family home, is to do your research and see if you can afford it and also what benefit you would gain by purchasing from a tax sale. Be aware that homes quickly come off of the auction block just before the auction, thanks to short sales that save homeowners from going through the final stage of foreclosure.
Before you go to a foreclosure auction in Memphis, TN
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Prior to heading over to a tax sale of any kind, make sure that you know what the properties are and what you can afford. It’s incredibly important that you are aware of what you’re getting into before you make a bid at an online auction.
If you’re interested in participating in foreclosure auction in Memphis, do your homework thoroughly beforehand. The worst thing you can do is to show up to an online auction not knowing what you can handle financially and then find out you can’t bid on anything. Since these online auctions are so easy to jump into, it’s worthwhile to go to one to just observe. This is especially true if you’ve never been to one before!