Posted by Randy (SD) on July 27, 2005 at 14:04:58:
Your post intrigues me but forgive my ignorance, you said “the highest bid gets it then you receive a refund of the difference between the selling price and your bid” if the highest bid doesn’t determine the sales price, what does? In my local area the foreclosing lenders judgment is published and they are always the opening bid, if a private party or another individual bids $1.00 more and no one outbid you - you’re the winner and your expected to return later the same day with a cashier’s check for the amount of your bid. What you’re describing sounds similar assuming the judgment amount is not published, therefore you’re hoping your bid will exceed the lenders amount, is that how it works?
I’m tring to buy a house at auction tomorrow morning. I couldn’t get the bank financing together in time. The problem is that you must pay cash (cashiers check) at the auction, however, you do not get the title for about a week from the sheriff. So I need to float $150-165k for a week. I can probably secure it with a couple of other houses, but need to have everything put together by the end of the day.
I would say that it is impossible to pay with a cashiers check at the auction. The check has to be issued by a bank and they can not issue without the exact amount and since it is at an auction, the exact amount is unknown.
All auctions that I have been to required 10% the day of the auction, with the balance when clear title is given(closing). Why would a person pay more at the sale date.
I would also say that if you do not have the cash, I wouldn’t be winking, blinking, nodding, waving your hand to swat flies, or even making eye contact with the auctioneer at an auction.
Actually, 10% down only is rare. Here, you show up with multiple cashiers checks in varied amounts. Say a base bid check of 150K, then a bunch of 20s and 10s. You will get refunded within a month or so, but why tie up more than needed? Also, auctions here are still silly competative. Come here and buy a house a near FMV! What a deal…
The auction is run very strange here (sheriff’s auction). You submit your top bid (and a cashiers check for the full amount) and the highest bid get’s it. You then receive the difference between the selling price and your bid a few days later and then the title a week or so later. Which makes it very hard to get financing, but really good deals are available because almost all the houses go back to the banks.
Re: I need 150k by the end of today. Indianapolis - Posted by Blane (MI)
Posted by Blane (MI) on July 27, 2005 at 14:12:41:
Allen,
Sounds like you’re missing some information somewhere. Your winning bid should be the selling price, that’s what the auction is about, selling the property at the highest price.
Also, just because almost all the houses go back to the bank doesn’t mean there are really good deals available. They go back to the bank because there AREN’T very many good deals. Of the auctions I’ve seen, between 150 and 250 properties go to sale at a time, and usually 2-4 are bought, if that. If you are new at this, I’d avoid auctions.