Auction Deposit – How do I qualify to bid?
In order to qualify to bid at the Auction, you must have the deposit in the form of a bank check, cash or certified check for the amount advertised in the Mortgagee’s Notice of Sale. The deposit amount will also be noted in the auction ad. At the conclusion of the Auction, the successful bidder will be required to execute the Memorandum of Sale and to hand over the required deposit to the auctioneer or the lender’s agent. The successful bidder must also present adequate identification (Valid Driver’s License Mass ID or Passport) to the Auctioneer.
Who do I make the deposit check payable to?
It is best to make the check payable to the person who is going to bid at the auction. At the conclusion of the Sale the successful bidder will endorse the check to the law firm representing the lender.
How can I obtain information about properties listed for auction?
There are many sources you can utilize to obtain information about the properties listed on our website. Go to our Helpful Links page to access several sources of public information. Our Helpful Links page has been designed as a convenience to assist you in gathering publicly available information. Asset Protection Group does not warrant or represent the accuracy of the information contained on the websites listed. We advise, and encourage, everyone accessing the information to independently confirm its accuracy.
Where is the auction held?
The Auction will be held at the property being sold.
If I purchase a foreclosed property at the auction sale, will I be guaranteed clear title?
No. The lender does not make any warranties or representation concerning the status of the title. All bidders are required to perform their own title examination to determine the status of the title.
Will I be able to see the inside of the property?
There is no guarantee that the property will be available for inspection prior to the auction. Typically, access is not granted. On occasion, property access is available. The Auction will proceed whether or not access is provided. The property is sold “as is” with no warranties or representations.
How long do I have to pay the balance of the purchase price?
Typically, the successful bidder will have 30 days to conclude the purchase of the property. All of the terms and conditions of the sale will be announced at the time of sale and will be included in the Memorandum of Sale executed at the conclusion of the bidding.
Where is the closing held?
The Memorandum of Sale usually provides that the closing take place at the office of the law firm conducting the foreclosure. The closing consists of an exchange of the foreclosure deed, and related documents, for the balance due of the amount bid. The seller will not execute any of the typical documents that are found in a conventional closing transaction.
What if I can’t pay the balance within the 30 days required?
You will forfeit the deposit you paid.
Will I be responsible to pay anything more than the bid price to purchase the property?
Yes. The successful bidder is responsible to pay all the costs associated with the sale, including recording costs and excise/documentary stamps and to pay any liens have priority over the mortgage being foreclosed. Every effort is made to determine the amount of any liens having priority over the mortgage and to announce those amounts at the time of the auction. However, it is always prudent for potential bidders to obtain that information independently, prior to the auction day.
How much are the outstanding Real Estate Taxes and Municipal Charges?
We usually have a municipal lien certificate available for review at the time of sale, noting the outstanding taxes and other municipal charges, if any. However, it is always prudent for potential bidders to obtain that information independently, prior to the auction day.
How do IRS liens impact me if I purchase a property at auction?
If we know about an IRS lien, we will announce it at the sale. If you purchase a property at foreclosure that is subject to an IRS lien, your purchase is subject to a 120 day right of redemption by the IRS. If you are notified by the IRS within 120 days of the sale of it’s intention to redeem the property, you must sell them property for the price you bid.
Will the law office provide title insurance?
No. The law office represents the foreclosing lender’s interest only. If you want title insurance, you should contact your attorney to obtain a title insurance policy.