Pre-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. How were the values determined? How current are they?
Q. Should I go inspect the property prior to bidding at the auction?
Q. Can I conduct inspections after the auction?
Q. Can I bring a contractor with me during inspection?
Auction Process
Q. What do I need to bring to one of your auctions?
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
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 if I have a real estate agent or broker?
Q. May I attend to just watch?
Q. How long will each auction last?
Q. Can I purchase more than one property at this auction?
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. If I am the winning bidder, can I assign my contract to someone else?
Q. What if I change my mind? Can I cancel the transaction after the fact?
Q. Do you publish auction results?
Title
Q. Because these properties were foreclosed on, are there any liens on the property?
Q. Is there a redemption period where the former owner can make good on their debt?
Q. Can I choose my own Title Company?
Q. When will I receive title to any property I may purchase?
Finance
Q. How do I get financed if I’m the winning bidder?
Q. What if I want to use my own lender?
Q. Can bidders provide their own financing?
Q. What does it mean when the property is listed as “Cash Only”?
Q. What does it mean when the property is listed as “Cash Only, Renovation Financing May Be Available”?
Q. When the property is listed as “Cash Only”, do I have to have the cash at the auction?
Q. What do we need to bring if we are paying for the property in cash?
Q. What are the closing costs?
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Pre-Auction |
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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 our lenders offer competitive financing options at today's low rates AND you can pre-qualify today by calling 1-800-648-5799! |
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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 available to auction bidders. |
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| | Q. How were the values determined? How current are they? |
| Ans. The previously valued to price is based on the higher of a) the appraised value of the property in connection with the most recent mortgage on the property, b) the most recent asking price, c) the assessed value, or d) the most recent broker price opinion. |
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| | Q. Should I go inspect the property prior to bidding at the auction? |
| Ans. Yes, yes, yes! The only way for you to make an informed decision when it comes to bidding and buying is to not only visit, view and inspect the property prior to the auction, but also view any property information and disclosure documents pertaining to that property. Do your investigation. Make 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 also 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 conduct inspections after the auction? |
| Ans. No. All inspections must be completed prior to the auction event. The properties will not be open for walkthroughs or inspections after auction. |
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| | Q. Can I bring a contractor with me during inspection? |
| Ans. Yes! |
Auction Process |
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| | Q. What do I need to bring to one of your auctions? |
| Ans. If you plan to bid and purchase a property at the auction, you must have: - A $5,000 cashier’s check (or cash) made payable to yourself. (A $10,000 cashier’s check is needed to purchase each additional property.)
- 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. (Each additional property purchased will require a 15% Earnest Money Deposit.)
- Valid picture identification for all parties involved in the transaction, such as a Government issued photo ID
- We also recommend you bring the last 2 years of tax returns, last 2 years of W-2’s, and last 30 days of pay stubs to help the process move more quickly.
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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? |
| 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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| | Q. Do I need any experience to bid at one of your auctions |
| 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 they can. After a few properties are auctioned and sold, you will see for yourself how easy the process is and be ready to bid 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 or by calling the number on this brochure. 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 if I have a real estate agent or broker? |
| Ans. REDC welcomes broker participation! A one percent (1%) commission, based on the Winning Bid Amount, will be paid by REDC to Registered Brokers/Agents whose client(s) successfully purchase a property and close escrow. To qualify, make sure your broker or agent completes the 3 following steps: - Pre-Register with REDC as a “Registered Broker” at least 24 hours prior to the Auction Day.
- Check in with their client(s) at the Broker Check-In on Auction Day.
- Escort their client(s) as Winning Bidder to the contract area to sign docs.
Please see the Terms and Conditions in regards to agent/broker participation for a full explanation. |
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| | Q. May I attend to just watch? |
| Ans. Yes, however, Registered Bidders will be granted access before the general public. If we are nearing room capacity, we will have to restrict attendance to Registered Bidders only. We cannot violate fire and safety codes. |
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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. You may refer to the auction day line listing in the brochure for estimated arrive-by times. 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. 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
3. Show the ability to purchase the properties for cash by means of current bank statement, CD statement, stock portfolio statement, or retirement account statement. Your documents must be dated within ten (10) days of the auction event.. |
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| | Q. What is the 5% Buyers Premium and what is it used for? |
| Ans. 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. For 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. The 5% Buyer’s 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. |
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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 (15% for each additional property purchased), 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 cashier’s check or cash ($10,000 for each additional property purchased). The remaining balance can be paid by 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. The first $5,000 of the Earnest Money Deposit must be paid in the form of a cashier’s check or cash. Change will not be given on Auction Day. If it is less than your required down payment, you will be refunded the difference at closing. |
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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 the Earnest Money Deposit must be paid in the form of a cashier’s check or cash. |
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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. 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. Do you publish auction results? |
| Ans. No. As the broker in the transaction, REDC is prohibited from disclosure during escrow. Once escrow closes, you can obtain the information from the County Recorder's Office. |
Title |
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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. Is there a redemption period where the former owner can make good on their debt? |
| Ans. No! These are all bank owned properties; the foreclosure process has been concluded and finalized. |
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| | Q. Can I choose my own Title Company? |
| Ans. No, Seller chooses Title Company. Closing costs are standard and customary for the county in which the property is located. |
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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. |
Finance |
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| | Q. How do I get financed if I’m the winning bidder? |
| Ans. Designated lender representatives will be available on auction day to assist you with pre-qualification so you can choose the financing option that’s right for you! Competitive rates and programs are available. You can also “Pre-Qualify” prior to the auction by checking the pre-qualification box on the Bidder Registration Form or by calling 1-800-648-5799. Remember, the lenders offer very attractive financing at today's low rates and loans with no pre-payment penalties. Please note, auctioneer’s designated financing lender(s) may not provide financing if the Total Purchase Price is less than $30,000. See Terms and Conditions for complete information. |
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| | Q. What if I want to use my own lender? |
| Ans. You are free to use your own lender. We encourage you to utilize the Designated Lenders due to their experience as large, national lending companies who specialize in helping everyone…..from first-time buyers to sophisticated investors. Please see the auction terms and conditions and review the purchase agreement so you are fully informed. |
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| | Q. Can bidders provide their own financing? |
| Ans. Yes, but the sale will not be contingent upon financing, escrow closing will not be contingent upon financing, nor will escrow closing be extended for that purpose. Winning bidders using their own financing must at time of auction provide a written unconditional lending commitment from their lender. Failure to provide at auction will result in the winning bidder being required to use Seller's lender, subject to qualification. Bidder must fill out loan application for their lender allowing Seller to confirm credit status. |
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| | Q. What does it mean when the property is listed as “Cash Only"? |
| Ans. It means that the buyer must qualify as a cash buyer without using a lender. We can verify accounts online. Qualifying accounts are bank accounts, CDs, mutual fund and stock accounts, 401K, IRA, and credit lines. |
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| | Q. What does it mean when the property is listed as “Cash Only, Renovation Financing May Be Available”? |
| Ans. A renovation loan is a loan that enables you to get cash to renovate a property that would not normally qualify for financing. It follows FHA guidelines. Renovation Financing may be available on select properties typically sold as “Cash Only” which meet the loan eligibility requirements as set by the lender. |
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| | Q. When the property is listed as “Cash Only”, do I have to have the cash at the auction? |
| Ans. You must have the down payment (5% for owner occupied, 15% for investment property) on auction day, and be able to fund in cash within the 30 day escrow. |
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| | Q. What do we need to bring if we are paying for the property in cash? |
| Ans. On auction day, you will need the 5% deposit (15% for each additional property purchased) plus proof of the ability to obtain the cash within 30 days. Documents of proof include 30 days of paycheck stubs, a recent bank statement or mutual fund statement or IRA statements…wherever the funds are coming from. Also current ID for title. |
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| | Q. What are the closing costs? |
| Ans. The Standard and Customary charges for the county in which the property is located in, which may include escrow fees, recording fees, normal pro-rations, lenders title insurance premiums and fees, loan fees, document processing fees, document transfer taxes, and homeowners association dues |
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| We’ll see you at the Auction!! |
