Pre-Auction |
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Q. What is a Pre-Auction Bid? |
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Ans. Making a Pre-Auction Bid provides an opportunity to present your HIGHEST and BEST bid to the seller OUTSIDE of the auction bidding process. All Pre-Auction bids will be submitted to the seller for consideration IMMEDIATELY and are Subject to Seller Confirmation. Remember, this Pre-Auction Bid will NOT be entered as an Auction Day Bid. |
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Q. What types of properties will be sold at this auction? |
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Ans. Whether you are a first-time home buyer, looking for a second or vacation home, or a real estate investor, REDC offer's a wide variety and attractive selection of homes, all at auction prices! These are residential properties ranging from single family homes to condo units and 1-4 multi-family residential units and more! |
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Q. Who owns the properties that are being offered at the auction? |
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Ans. These properties are all acquired by lenders through the foreclosure, sheriff's sale or deed in lieu of foreclosure process and are now being liquidated. The lender's don't want these homes on their books and have ordered them to be sold - these homes must be sold, and they must be sold fast! 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? |
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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? |
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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 read and review 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 viewedthe property prior to bidding, but have also inspected, reviewed and acceptedall 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? |
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Ans.No. All inspections must be completed prior to the auction event. For each auction we event there will be published select open house viewing dates for you to view the properties. The properties will not be open for walkthroughs or inspections after the auction. |
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Q. Can I bring a contractor with me during inspection? |
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Ans. Yes! |
Auction Process |
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Q. What do I need to bring to one of your auctions? |
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Ans. If you plan to bid and purchase a property at the auction, you must have:
- A $2,500* or $5,000* cashier's check (made payable to yourself) or cash for the first property purchase. A $5,000* or $10,000* cashier's check is needed to purchase each additional property.
- A personal check or cash to pay the balance of the required 5% Earnest Money Deposit due on auction day. A 15% Earnest Money Deposit is required on each additional property purchased.
- Valid photo identification for all parties involved in the transaction, issued by a government agency (driver's license, passport, etc)
- 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.
* The required cashier's check amounts vary per auction, please reference the specific auction details and terms and conditions for required amounts. |
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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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Q. Do I need any experience to bid at one of your auctions |
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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 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 half 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? |
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Ans.Yes! But registering is free and 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. To go directly to the FREE auction Registration, click here: https://www.auction.com/login.php?back=/bidders-registration-form.php |
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Q. What if I have a real estate agent or broker? |
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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. To go directly to Broker Registration, click here: https://www.auction.com/broker-registration.php
- 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? |
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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? |
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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 for auction that 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? |
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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% ($5,000* or $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
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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.
* The required cashier's check amounts vary per auction, please reference the specific auction details and terms and conditions for required amounts. |
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Q. What is the Buyers Premium and what is it used for? |
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Ans. A Buyer's Premium* equal to the greater of 5% of the Winning Bid Amount or $2,500 will be added to the Winning Bid Amount to establish the Total Purchase Price.
For example, if the Winning Bid Amount is $200,000, then the Buyer's Premium* would be $10,000 (5% of $200,000). The Total Purchase Price is then calculated as the Winning Bid Amount + the Buyer's Premium, or $200,000 + $10,000 = Total Purchase Price of $210,000.
The Buyer's Premium* is used to help the Auction Company/Broker promote the auction 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.
*Remember: A Buyer's Premium equal to the greater of 5% of the Winning Bid Amount or $2,500 will be added to establish the Total Purchase Price.
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Q. What is the Earnest Money Deposit? |
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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. A 15% Earnest Money Deposit is required for each additional property purchased. This is not the financing deposit or down payment, but rather the amount required as Earnest Money on auction day.
For 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 for your first purchase is $10,500 (5% of $210,000). |
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Q. How can I pay the Earnest Money Deposit? |
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Ans. The first $2,500* or $5,000* of the Earnest Money Deposit must be paid by cashier's check or cash ($5,000* or $10,000* cashier's check for each additional property purchase). 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.
* The required cashier's check amounts vary per auction, please reference the specific auction details and terms and conditions for required amounts. |
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Q. What if my Earnest Money Deposit required is less than the required cashier's check? |
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Ans. The first $2,500* or $5,000* of the Earnest Money Deposit must be paid in the form of a cashier's check or cash ($5,000* or $10,000* cashier's check for each additional property purchase). 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.
* The required cashier's check amounts vary per auction, please reference the specific auction details and terms and conditions for required amounts |
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Q. What if I buy more than one property, what is my Earnest Money Deposit requirement? |
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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 $5,000* or $10,000* of the Earnest Money Deposit must be paid in the form of a cashier's check or cash.
* The required cashier's check amounts vary per auction, please reference the specific auction details and terms and conditions for required amounts. |
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Q. If I am the winning bidder, can I assign my contract to someone else? |
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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? |
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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? |
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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.
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Title |
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Q. Because these properties were foreclosed on, are there any liens on the property? |
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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? |
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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? |
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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? |
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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? |
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Ans. It is recommended you take advantage of our FREE loan pre-qualification through our National Financing Lenders prior to auction day. The lender's offer competitive rates and programs, with financing available as low as only 3.5%* down! To pre-qualify for free right now, click here: http://www.auction.com/financing-information.php
*Certain restrictions and conditions apply. Subject to lender requirments. |
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Q. What if I want to use my own lender? |
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Ans. You are free to use your own lender…BUT, you will be requested to take an application with the onsite lenders at the auction should you be a successful bidder. 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? |
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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"? |
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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"? |
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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? |
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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? |
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Ans. On auction day, you will need the 5% Earnest Money Deposit (15% for each additional property purchase), 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 a current government-issued photo ID for title. |
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Q. What are the closing costs? |
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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. |
Online Only Auction Frequently Asked Questions
Registration Process |
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Q. Can I use my ATM/debit card for the deposit? |
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Ans. We recommend using a credit card. We place a "hold" but do not charge the credit card. A debit card does not recognize this transaction, so it may either reject it or pull the funds.
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Q. I am trying to register for the auction tomorrow…why won't it let me? |
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Ans. Registration for online only auctions is available up to the auction ending date. Please contact customer service for assistance if you are having any problems registering. |
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Q. Can I bid if I am not a US citizen? |
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Ans. Yes, anyone can bid! The registration and bidding process are the same for all bidders |
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Q. I registered for the website, but why can't I bid? |
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Ans. You may have created your profile with Auction.com, but did not register to participate in an online only auction event. Please go to the Online Bidding tab, click on the auction for which you'd like to participate and then click on the Register Now button. |
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Q. I registered, but it didn't ask for a credit card, how to I put in my deposit? |
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Ans. You may have registered to attend the live auction by mistake. Make sure you are registering for the online only auction event - Please go to the Online Bidding tab, click on the auction for which you'd like to participate and then click on the Register Now button. |
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Q. I forgot my password, how do I get back in? |
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Ans. On the sign-in page, click on "Forgot Your Password?" and fill in the answer to your security question. Your password will be automatically emailed to your user email address. |
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Q. How much is the credit card deposit? |
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Ans. The credit card deposit amount is based on the bidding limit you set for yourself. This amount varies from $2,500 to $15,000. |
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Q. How do I remove the hold on my credit card following an online auction? |
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Ans. If you are a successful bidder, the hold on your credit card will be removed within 24 hours of receiving the required earnest money deposit. If you did not purchase, the hold will be removed within 24 hours of auction end. |
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Q. Can I put it in my corporate name? |
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Ans. Yes, you can put it in the name of a Trust, partnership or corporate entity. To do so , you much fax in your entity formation documents to (800) 618- 3007, prior to bidding on the property. |
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Q. What documents are required for Corporations? |
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Ans. Articles of Incorporation, By Laws, and Resolution authorizing the Corporation and party signing Purchase Agreement to act on behalf of Corporation in this transaction. |
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Q. What is required for Limited Liability Companies (LLC)? |
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Ans. Articles of Organization, Operating Agreement, and Resolution authorizing the LLC and party signing Purchase Agreement to act on behalf of LLC in this transaction. |
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Q. What do I need to put it in a Trust? |
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Ans. Declaration of Trust and evidence that party signing contract is Trustee of the Trust. |
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Q. What is required for a Partnership? |
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Ans. Partnership Agreement and evidence of authority of party signing contract. |
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Q. What do I need to show for Proof of Funds? |
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Ans. Bank statements and/or investment statements for stock or bonds will suffice. |
Bidding Process |
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Q. What is a Pre-Auction Bid? |
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Ans. Making a Pre-Auction Bid provides an opportunity to present your HIGHEST and BEST bid to the seller OUTSIDE of the auction bidding process. All Pre-Auction bids will be submitted to the seller for consideration IMMEDIATELY and are Subject to Seller Confirmation. Remember, this Pre-Auction Bid will NOT be entered as an Auction Day Bid.
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Q. Can I increase my bidding limit? |
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Ans. Yes, you can increase your limit by clicking on the money bag icon in your account information section on the website. Please be aware that if you increase your limit after it has been initally set, an additional hold on your credit card for the amount required to raise your bidding limit will occur. .
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Q. Can I bid on more than 1 property? |
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Ans. Yes. You determine your bidding limits, and as long as you have enough funds you can bid on more than 1 property. Make sure that the sum of your bids does not exceed your bidding limit. |
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Q. What if I want to bid on back to back properties? |
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Ans. You may bid on as many properties as you like provided the sum of your bids does not exceed your bidding limit. |
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Q. Can I set a max bid once the auction has started? |
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Ans. Some events may indclude a proxy bid period, where you are able to set a bid amount and we will bid up to that amount for you automatically. On events that do not include this feature, you must make bids yourself. |
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Q. Can I set a proxy bid? |
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Ans. Some events may include a proxy bid period, where you are able to set a bid amount and we will bid up to that amount for you automatically. On events that do not include this feature, you must make bids yourself. |
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Q. When does the auction end? |
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Ans. The first property closes at the posted end time and the remaining properties will end in numerical order at various intervals. A property will have extended bidding time added if there a bid is placed in the final seconds of the auction. |
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Q. Do all the properties close at the same time? |
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Ans. Properties are scheduled to end in sequence, approximately 30 seconds apart on the date and time indicated on the bidder page. End times for some assets may be extended in 15 second increments due to aggressive last minute bidding by multiple parties.
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Winning Bidder Process |
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Q. How will I know if I am the Winning Bidder? |
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Ans. If bidding on your property ends and you see "SOLD!", along with an indication that you are still the highest bidder, you will receive a winning bidder confirmation via email in very short order. That email will be followed up as soon as possible within 24 hours by a phone call from one of our online sales representatives, who will walk you through the contracting process.
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Q. I received an email stating I am the highest bidder, but no one has contacted me. What do I need to do? |
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Ans. You will receive an email when you are the highest bidder on a property. If at the end of an auction you have not received another email indicating you were outbid, you should receive an email indicating you were the winning bidder for this property. Within 24 hours, you will receive a phone call to walk you through the contracting process. |
Closing Process |
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Q. Can I see the property after the auction? |
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Ans. Winning bidders are not authorized to enter the property until close of escrow. Remember that all properties are sold as-is and there is no inspection contingency. |
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Q. I haven't received my contracts, what do I do? |
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Ans. If you have not received your contract documents within 24 hours of auction end, please contact customer service at 1-800-793-6107 and ask to speak with the Director of Online Sales. |
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Q. Can I add another name on the contract after the auction? |
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Ans. All parties on contract must be added at the time the contracts are being drawn up. We cannot add co-buyers after the contract documents are sent out. |
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| We'll see you at the Auction!! |
