Actually it is likely full payment required - Posted by JT-IN
Posted by JT-IN on May 24, 2006 at 11:10:22:
Actually it is likely full payment is required, at the time of the auction, before there is clear title, at many Sheriff Sale or Trustee Sale type public auctions. Many venues operate this way, but it varies by county and jurisdiction, and even down to the legal firm who is prosecuting the sale.
In my area, full payment is required at the time of the bid, either by certified funds or company check. The buyer receives NOTHING in the way of right, title or interest in the property, and has no mortgagable or secured interest. The buyer does not acquire this interest for upwards of 60 days, and many times possession is not acquired for 90 days and longer.
There is no warranty as to clear title and it is a buyer-beware sale, meaning that the buyer must do their due-diligence up front. Most titles are cleared and any issues are resolved by the proper foreclosure action, but if liens or encumbrances are missed, meaning an error on the part of the Attorney, they are not offering any title other than what you get, which is any lien not cleared by the sale, survives the process as an encumbrance to the new buyer at sale. So it behoves one to do their homework and become proficient at spotting problems in advance, otherwise is can be costly.
CA$H is required to operate in this arena, which comes in the form of CA$H on hand, or the available equity in other mortgagable properties, one or the other. The days of signature lines of credit are evaporating quickly, due to the direction that Banks are anticipating the market to go, which is forcing a tightening of requirements for credit lines, of late. Bank regulators are coming down upon Federally Insured Banks for having unsecuted lines of credit, or at least that is the sentiment being echoed by many Bankers that I am in touch with.
JT-IN