Know The Rules Before Bidding On Foreclosure Home

DETROIT (WWJ) - Another auction of Michigan homes is being held Wednesday. A number of properties are in Metro-Detroit  but as WWJ's Mike Campbell reports you should know the rules before you do any bidding.

The ad says 70 homes are up for auction. Sometimes there are fewer than listed in the area, as some may be pre-sold. If you find a home of interest, drive by, at least, go in if you can, and inspect it.

You want to be sure it's a home you want because you have to put up non-refundable earnest money of $2500 cash or cashier's check with your bid. The only way you get it back is if someone else outbids you. If not, you have to buy it.

If it's a home purchase of $10,000 or less you have to pay in full that day.

Closings have to be within 30-45 days, condition of title is not guaranteed and you won't have time for a lawyer's review.

Plan on paying the buyer's premium: 5% in addition to your successful bid.

For more information on the Wednesday auction click on here.