Frequently asked questions about foreclosure auctions

It depends on who forecloses and where the debt sits. If the bank (first mortgage) forecloses, the prior HOA debt is almost always wiped out for the buyer, except for a limited amount the law lets the association collect. But if the HOA itself forecloses, there may be a senior mortgage the buyer inherits.

If you buy at the first-mortgage auction, that mortgage is wiped out and you get the property free of it. But any lien with higher priority than the one that foreclosed stays alive and you inherit it. Identifying which mortgage is foreclosing is the first thing to verify.

Liens with priority above the one that foreclosed survive: delinquent property taxes, federal IRS liens within their redemption period, certain municipal code fines, and any mortgage senior to the one that sued. Everything below the foreclosing lien is wiped out.

The property may come occupied by the prior owner or by tenants. You can't remove them yourself: you have to ask the court for a writ of possession. If there are bona fide tenants, federal and Florida law give them prior notice, usually 90 days.

It's a lawsuit to clear defects or doubts (clouds) on a property's title. After a foreclosure auction the title can carry unresolved liens or errors that prevent insuring or selling it; a quiet title action resolves them before a judge so you have clean, marketable title.

The portal requires depositing 5 percent of your intended maximum bid in advance. If you win, that deposit applies to the price and you must pay the balance the same day before 11:59 p.m. Eastern; if you don't pay, you forfeit the deposit.

A mortgage foreclosure is started by a creditor (bank or HOA) for an unpaid loan or dues, and it respects senior liens. A tax deed is started by the county for unpaid taxes and wipes out nearly all liens, including mortgages. They're different legal processes with different risks.

Almost never. Auction properties are sold as-is and are often occupied, so there's no interior showing like in a normal sale. You buy without going inside, which is why external analysis — comps, permits, violations, street photos — matters so much.

Start by understanding the process before putting money in: learn how the county auction works, how to calculate how much to bid, what debts a buyer can inherit, and how you pay if you win. Watch several auctions without bidding, set your budget and your per-property ceiling, and verify each case's title before you enter.

When the property sells for more than was owed, the surplus is held by the Clerk of Courts. The prior owner and other lienholders can claim it by filing a request with the court; the money does not belong to the auction buyer.

Start from the realistic resale value (ARV), subtract repairs, closing costs, holding costs, and your profit margin. What's left is the most you can bid without losing money. BIDROI computes it automatically and calls it the Strike Price.