How online foreclosure auctions work
There are two kinds of online foreclosure auctions. Some are the foreclosure sale itself, run online by a county clerk or an auction company, and usually need cash or certified funds. Others sell bank-owned homes after the sale, on sites like Auction.com, Xome and Hubzu, where you place a deposit, often pay a buyer's premium and close later, sometimes with a loan. Read the terms on each listing before you bid.
Updated November 2026. A plain-language guide, not legal advice.
Learn how to bid with a local agent- Two kinds
- The foreclosure sale itself, or a bank-owned home after it
- Extra cost
- Many sites add a buyer's premium to the winning bid
- Seller approval
- Some wins are subject to the seller's OK
- Financing
- Often allowed on bank-owned homes, rarely at the sale
Step by step
The order most online auctions go in. Each site's terms and the home in front of you can change it.
See online auctions on the mapLearn how to bid with a local agent
Know which kind of auction it is
The listing says whether it is a foreclosure sale (trustee or sheriff sale) or a bank-owned home. That decides how you pay, what you inherit and how fast you have to close.
Register and verify your funds
Create an account, verify your identity and add a bidding deposit if the site asks for one. Some sites ask for proof of funds or a loan pre-approval before you can bid on certain homes.
Research the home before bidding
Read the property page, the auction terms and any title or disclosure documents. Many homes can't be seen inside, so drive by, check recent sales nearby and budget for repairs.
Set your top number, including fees
Add the buyer's premium, closing costs, back taxes or liens you may inherit and repairs. Bid up to that number and stop. Many sites extend the clock when a late bid comes in, so don't count on a last-second win.
If you win, move fast
You'll sign purchase documents within hours and send the deposit, often by the next business day. Missing a deadline can cost you your bidding deposit.
Close on the timeline in your contract
For bank-owned homes, close through the escrow or title company named in the documents. For foreclosure sales, pay as the terms require and record your deed.
What can go wrong
The premium and fees push you over
A buyer's premium is added on top of the winning bid on many sites. Leave room for it in your top number.
Your win isn't final
Bids marked subject to confirmation can be turned down by the seller. Don't lock up other money until the sale is approved.
Buying as-is, sight unseen
Online auction homes are usually sold as-is, and some are still occupied. Budget for repairs and, if needed, the legal process to get possession.
Who you need
Agent who works foreclosures
Sees bank-owned and HUD homes the day they list, and knows which ones sat.
Ask them: How many bank-owned or auction homes did you close last year?
Lender with fast proof of funds
Auctions and bank sellers want proof you can close before they take you seriously.
Ask them: How fast can you send a proof-of-funds letter, and can you close in 10 days?
Title company
Finds the liens that survive a sale before they become your problem.
Ask them: Can you run a title search before the auction date?
Real estate attorney
Reads auction terms, deeds and occupant rules in your state.
Ask them: What happens if someone is still living in the home after I buy it?
Courthouse or online, MLS or auction site, HUD or bank: a local agent can show you which route a home is on.
Sources: Auction.com bidder terms (buyer's premium, deposits), Auction.com Texas trustee sale terms, Florida Statutes 45.031, judicial sales
Experts we work with
Local agents who work distressed and off-market homes, and a lender to call before you bid. Ask through us and we'll introduce you by email.
Robert Meche
Broker and owner, SWR Group at Keller Williams
Collin County, TX, Dallas County, TX, Denton County, TX, Cooke County, TX
Buying somewhere else? Tell us the county and we'll point you to someone.
Recommended lender
Cole Boren
Branch Manager, CMG Home Loans
Cole has nearly three decades in mortgage lending. He helps buyers plan a purchase around the bigger picture: the cash they keep, the home they own now and the timing of the move.
- What you can qualify for now
- Buying before you sell
- Which loan fits the home you want
Cole Boren, NMLS #384591. CMG Home Loans, NMLS #1820. Equal Housing Opportunity. Licensing varies by state. Check his NMLS record.
Real Estate Intel recommends people we work with. You're free to use any agent or lender.
Questions buyers ask
How much is the buyer's premium?
It varies by site and home. Auction.com's terms say it is typically the greater of 5% of the winning bid or a published minimum, and it can vary or be waived. Check the property page before you bid.
Can I get a mortgage for an online auction home?
Often for bank-owned homes, if the listing allows financing and you can close on time. Foreclosure sales usually need cash or certified funds right after the sale.
Are county foreclosure sales held online?
In some places. Florida law allows clerks to hold foreclosure sales online, and many Florida counties do. Other counties still hold them in person, sometimes with remote bidding through an auction company.
What happens if I win and can't pay?
You can lose your bidding deposit, and the home can go to the next bidder or back to auction. Line up your funds before you bid.
Get your county's new online auctions every week
New default notices, sale dates and homes that went back to the lender. Free, one email a week.