We've been attending a certain foreclosure auction for kicks every year. There are great deals, but also things I wished I knew in the beginning.
1. You might not get title to the property. Quitclaim deed. If there's a trailer or temp structure, it will not have a title/deed, because those come and go.
2. People might still be living there, and it's your job to gently tell them to leave. Some owners were living normally and responsibly, but had medical conditions or layoffs that made them unable to pay taxes that year. Usually the county is merciful in delaying, but then the auction can hit very abruptly. You can offer that they rent from you, but not many people will be happy to pay rent dutifully for something they already owned.
3. Misc. property on the land is not yours. An auction land purchase is only the land/buildings. You can't claim the boat, motorcycle... and maybe not even the mobile home on the land. (We visited a collector-prepper's property... the yard was filled with handy things like water tanks, gas cans, cages. Technically, we would not be allowed to remove them.)
4. Tiny plots of land get mixed in, that can be incredibly affordable. Spaces between houses --which could make a handy microfarm plot. At one auction, a small fishing-sized patch along a river, sold for under $100. These small plots became less common after auctioneers took over the role from the county coordinator.
5. A county will have annual auctions, but sometimes sell land online in between. Find out which companies they use-- it is often on the county site.
6. Do not wander through the property beforehand to check it out. (Or do it quietly.) It is deemed trespassing. The day of the auction, bidders will park and look at it... you can see who you'll be bidding against.
7. Payment is very immediate -- a percentage the night of the auction, and balance a week or so later. Look for rules on what type of check and documentation to bring.
8. Even if someone outbids you, you have a chance of owning it, so don't give up. If the bid-winner does not come up with payments on time, it can go to the second highest bidder. The auctioneer/county keeps track, and can call people, even a week later.
9. Policies will be posted on whether debts come along with the property. Make sure to clarify before you buy!
10. If there are odd factors like gas tanks on the property, bad drainage, even windmills ... look through old newspapers to make sure there weren't disputes, toxic cleanups due, new imposed regulations.
11. Make sure public utilities and water run to the property-- it can be a long ways to the next hookup. (We almost bought a remote farm with no running water!)
12. If you see abandoned properties that you wish you could buy, keep watching them. Sometimes they were owned by elderly who had to move into facilities, or estates couldn't agree on who owned/ took care of it. Research unveils stories. You can approach the town or assessor to see if they know more. If they refer you to the family to make an offer, make sure there are no back taxes/liens/penalties due.
