Q. Do I need any experience to bid at one of your auctions?
Q. Do I need to register to bid at the auction?
Q. What types of properties will be sold at this auction?
Q. Who owns the properties that are being offered at the auction?
Q. Because these properties were foreclosed on, are there any liens on the property?
Q. How will I get financing if I’m the winning bidder?
Q. What if I want to use my own lender?
Q. Should I go inspect the property prior to bidding at the auction?
Q. Can I purchase more than one property at this auction?
Q. When will I receive title to any property I may purchase?
Q. What if I change my mind? Can I cancel the transaction after the fact?
Q. How long will each auction last?
Q. What is the 5% Buyers Premium and what is it used for?
Q. What is the Earnest Money Deposit?
Q. How can I pay the Earnest Money Deposit?
Q. What if my Earnest Money Deposit required is less than the $5,000 cashier’s check?
Q. What if I buy more than one property, what is my Earnest Money Deposit requirement?
Q. What if I have a real estate agent or broker?
Q. If I am the winning bidder, can I assign my contract to someone else?
Q. Can I conduct inspections after the auction?
Q. What is the difference between a cashier's check and an official check or bank check and why must I have a cashier’s check on auction day?
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| Ans. No….bidding is simple and registering as a bidder is FREE! Whether you are a first timer or an auction veteran, come to the auction, explore and ask questions. Our staff will be happy to assist you in any way we can. After a few properties are auctioned and sold, you will see for yourself how easy the process is and be ready to bid for yourself. We also conduct a “Bidder Seminar” about ½ hour prior to the start of the auction to help familiarize you with the method and pace of bidding that the auctioneer will utilize. |
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| | Q. Do I need to register to bid at the auction? |
| Ans. Yes! But registering is free and easy. You can register right now, online. It’s easy! We recommend that your register at least 48 hours prior to the auction day in order to receive information relating to the event. And remember, it’s totally FREE! There is no obligation on your part! Note: You must register separately for each auction event listed in the auction calendar. |
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| | Q. What types of properties will be sold at this auction? |
| Ans. These are residential units ranging from single family detached homes to condo units and 1-4 multi-family residential units. These are properties acquired by lenders through the foreclosure, sheriff’s sale or deed in lieu of foreclosure process. The best part is that financing is available at today's low rates AND you can pre-qualify easily online! |
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| | Q. Who owns the properties that are being offered at the auction? |
| Ans. These properties are all residential properties acquired by lenders through the foreclosure, sheriff’s sale or deed in lieu of foreclosure process and are now being liquidated. Be sure to register and attend the auction to take advantage of the fantastic bargains that will be realized by the auction bidders. |
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| | Q. Because these properties were foreclosed on, are there any liens on the property? |
| Ans. No! The sellers provide insurable title to the properties sold at auction. You will receive a standard “Title Policy” as part of your transaction. Please review the purchase agreement for further details. |
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| | Q. How will I get financing if I’m the winning bidder? |
| Ans. Designated lenders will be available on auction day to offer competitive financing terms “On the Spot”. Lender representatives will be available prior to the start of the auction and immediately after you become the successful bidder so that you can choose the financing option that‘s right for you! You can also “Pre-Qualify” prior to the auction by checking the pre-qualification box on the Bidder Registration Form. Remember, the lenders offer very attractive financing at today's low rates and loans with no pre-payment penalties. |
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| | Q. What if I want to use my own lender? |
| Ans. You are free to use your own lender…BUT, if you choose to utilize a third-party lender (a lender other than those designated lenders for the auction) there is no contingency for financing and failure to gain approval and close the transaction within the specified time frame may result in liquidated damages. We encourage you to utilize the Designated Lenders due to their experience as large, national lending companies who specialize in helping everyone…..from the first-time buyer to the sophisticated investor. Please see the auction terms and conditions and review the purchase agreement so you are fully informed. |
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| | Q. Should I go inspect the property prior to bidding at the auction? |
| Ans. Yes, yes, and yes! The only way for you to make an informed decision regarding bidding and buying is to not only visit, view and inspect the property prior to the auction, but to also view any property information and disclosure documents you feel are necessary. Do your investigation. Do your inspections. By registering and bidding at the auction, you are representing that you have not only viewed the property prior to bidding, but have inspected, reviewed and accepted all relevant property information you deem necessary to make an informed decision. The properties will not be open for inspection after the auction so be diligent and do your inspections and investigations prior to the auction. |
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| | Q. Can I purchase more than one property at this auction? |
| Ans.Yes, however, if you are planning to purchase more than one property, you must register as a “Multiple Bidder” and do the following:
1. Be prepared to make an earnest money deposit of 15% ($10,000 of which must be by cashier’s check) for each property purchased after the first; and 2. Agree to be pre-qualified by the designated lender
Or
2. Show the ability to purchase the properties for cash by means of current bank statement, CD statement, stock portfolio statement, or retirement account statement. By recent, it must be dated within ten (10) days of the auction event. |
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| | Q. When will I receive title to any property I may purchase? |
| Ans. The closings are expected to occur within 30 days of the auction event. At closing, and upon payment of the purchase price and closing costs, you will receive insurable title vested as you designated to the closing agent. Please review the purchase agreement for additional information. |
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| | Q. What if I change my mind? Can I cancel the transaction after the fact? |
| Ans. No! Once the auctioneer has announced “sold,” you have agreed to purchase the property. There is no rescission or “cooling off period”. That is it why it is important for you to conduct all of your due diligence and inspections prior to auction day and bidding on the property. Please review the auction terms and conditions for further information. |
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| | Q. How long will each auction last? |
| Ans. Generally, we are able to auction between 25 to 30 properties per hour, so things will be moving at a rapid, but manageable pace for our bidders. The length of each auction is dependent upon how many properties are in the auction portfolio for auction day. Please allow yourself sufficient time to attend our auction event so that you are able to take advantage of all the opportunities presented on auction day. |
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| | Q. What is the 5% Buyers Premium and what is it used for? |
| Ans. The 5% Buyers Premium is used to help the Auction Company/Broker promote the auction through multiple mass-media outlets such as Television, Radio and Direct Mail, and to help defray the auction expense costs without having to pass on all of those costs to the Seller. It is a standard practice utilized by most major auction companies. The Buyer’s Premium is 5% of the Winning Bid Amount and added to the Winning Bid Amount to arrive at the Total Purchase Price. As an example, if the Winning Bid Amount is $200,000, then the Buyer’s Premium is $10,000 ($200,000 x 5% = $10,000). The Total Purchase Price is then calculated as the Winning Bid Amount PLUS the Buyer’s Premium or $200,000 + $10,000 = Total Purchase Price of $210,000. |
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| | Q. What is the Earnest Money Deposit? |
| Ans. The Earnest Money Deposit is the amount of money you are required to put down on auction day. On auction day, you must deposit with the escrow/closing agent an Earnest Money Deposit equal to 5% of the Total Purchase Price, regardless of the amount you finance. This is not the financing deposit or down payment but rather, the amount required as earnest money on auction day. As an example, if the Total Purchase Price is $210,000 (the Winning Bid Amount PLUS the Buyer’s Premium), then the Earnest Money Deposit required on auction day is $10,500 ($210,000 x 5% = $10,500). |
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| | Q. How can I pay the Earnest Money Deposit |
| Ans. The first $5,000 of the Earnest Money Deposit must be paid by a cashier’s check or cash. The remaining balance can be paid by a personal check or by cash. You will be provided with a receipt on auction day showing that the escrow/closing agent received your Earnest Money Deposit. There are no exceptions to this requirement. |
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| | Q. What if my Earnest Money Deposit required is less than the $5,000 cashier’s check? |
| Ans. If it is the first property acquired at auction, your Earnest Money Deposit is to be 5% of Total Purchase Price or $5,000, whichever is greater. The first $5,000 of Earnest Money Deposit shall be in the form of a cashier’s check or cash. |
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| | Q. What if I buy more than one property, what is my Earnest Money Deposit requirement? |
| Ans. If you buy more than one property and it is not your first property acquired at auction, then your Earnest Money Deposit is to be 15% of Total Purchase Price or $10,000, whichever is greater. The first $10,000 of Earnest Money Deposit shall be in the form of a cashier’s check or cash. |
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| | Q. What if I have a real estate agent or broker? |
| Ans. Please refer to our Agent/Broker Cooperation page of the website for the terms and conditions of agent/broker cooperation and registration. |
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| | Q. If I am the winning bidder, can I assign my contract to someone else? |
| Ans. No. The purchase agreements are not assignable. All parties who wish to buy must be present on auction day so that they can register for the auction and execute the necessary documents if they win. |
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| | Q. Can I conduct inspections after the auction? |
| Ans. No. All inspections must be completed prior to the auction event. The properties will not be open for walk thrus or inspections after auction.
REMEMBER, if you plan to purchase a property at the auction, you must: - Have a $5,000 cashier’s check (or cash) made payable to yourself.
- The available funds to write a personal check or pay cash for the balance of the required 5% earnest money deposit due on auction day.
- Valid picture identification for all parties to the transaction.
Register Now!!
Pre-Qualify Now!!
We’ll see you at the Auction!!
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Q. What is the difference between a cashier's check and an official check or bank check and why must I have a cashier’s check on auction day? |
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Ans. The terms "cashier's check," "treasurer's check," and "official check" are often used interchangeably. A cashier’s check is a draft where the drawer bank and the drawee bank are the same. In other words, where the check is drawn by a bank on itself. If so, and if it is not captioned "expense check" or "dividend check" or "payroll check" or in any other way that makes it a special-purpose payment, consider it as fitting the definition of a cashier's check and making the funds available accordingly. A cashier’s check has availability requirements defined under Reg. CC. and that is why a cashier’s check is required as part of the earnest money deposit. |
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