A.
ALERTS
After you create a free account, you can choose to receive custom alerts and real-time email notifications when a property is cleared for sale or the auction is postponed or cancelled.AUCTION BIDDER CARD
The numbered card that bidders use to submit a bid at a live foreclosure auction.AGENT COMMISSIONS
This is the amount paid to a real estate broker and/or agent when a home is sold.AUCTION.COM
The nation’s leading auction marketplace for residential bank-owned and foreclosure sale properties.AUCTION.COM ACCOUNT
This is your free personal account. Once you create an account, you’ll receive a dashboard where all of your saved properties, searches and messages will reside.AUCTION CALENDAR
The calendar lists upcoming auction dates, venues and other important information for live foreclosure auctions. Some live events span the course of several days so make sure to review each day’s properties for the ones you intend to bid on.AUCTION MARKETING AGREEMENT (AMA)
The signed agreement between the seller of a property and Auction.com.B.
BANK-OWNED
These properties are owned by a lending institution and typically are sold through bank-owned auctions.BANK-OWNED INCOME PRODUCING
These properties are owned by a lending institution and are rentals with paying tenants in place.BANK-OWNED & NEWLY-FORECLOSED
Newly foreclosed properties are those that are posted for sale just days after they are classified as foreclosed.BANK-OWNED OCCUPIED
These properties are owned by a lending institution and may be occupied by the former owner or tenants. The new owner takes on the responsibility of managing the occupancy state once purchased.BANK-OWNED VACANT
These properties are owned by a lending institution and do not house tenants or owner-occupants.BENEFICIARY
A beneficiary in real estate is typically the lender. When the legal ownership of property is transferred, it takes place with a deed of trust. The title is transferred to a trustee, which holds it as security for a loan between the borrower and lender. The borrower is referred to as the trustor, while the lender is referred to as the beneficiary.BID
To offer an amount in an attempt to buy something, while competing with others at an auction. At Auction.com, bidding can be done online or at a live foreclosure auction. The bidder who meets the seller’s minimum price and is the highest bidder typically wins the auction.BID DEPOSIT
Auction.com may require two types of bid deposits:- For select properties, a deposit may be required during the registration period. This deposit shows you are committed to proceed to closing if you are the auction’s winning bidder. You will be required to submit the deposit funds to finalize your property registration and activate your bidding privileges. It is essential to note that this process may take 1 to 2 business days, so plan accordingly to ensure adequate clearance time before the auction commences.
- For specific customers, a bid deposit may be necessary to reactivate their account after they have failed to comply with the bidding terms and conditions. In this scenario, the required deposit amount may increase in correlation with the number of violations of these terms and conditions.
BID INCREMENT
The bid increment is the amount that the bid increases during the auction. For example, if the current bid is $50,000 and the bid increment is $5,000, the next acceptable bid amount would be $55,000.BROKER
Any person who acts as an agent, bringing two parties together for any type of transaction and earns a fee for his or her service. At Auction.com, broker partnerships are encouraged.Bundle And Save Event
An exclusive auction event that allows buyers to reduce their buyer’s premium fees by eliminating the minimum of $2,500 when purchasing two or more selected properties. When you purchase two or more properties during this event, you’ll only pay a fixed 5% of the purchase price. If one of the bundled properties does not have buyer’s premium, you only pay 5% for the property(s) with a buyer’s premium requirement. Properties with no buyer’s premium count for the bundle. Exact buyer’s premium amounts will be provided during contracting phase.
The Bundle and Save promotion only applies to selected properties won in the Cyber Monday event concluding on 11/27/2023. Buyers must close on two or more properties selected for the event and perform timely under the Participation Terms and the purchase agreement for all properties to qualify for this offer.
For additional questions place contact a Buyer Experience Team Member at 800-793-6407 Mon – Fri 5am-5pm PT.
BUYER’S PREMIUM
Some properties sold in bank-owned online auctions require a “Buyer’s Premium.” The premium is usually 5% of the winning bid or $2,500 whichever is greater. This fee is only required if you are the winning bidder.C.
CANCELLATION FEE
A $2,500 cancellation fee may be charged when the winning buyer does not fulfill their post-auction obligations, as per the Participation Terms. This improves the auction experience by encouraging all participants to place serious bids.CASHIER’S CHECK
A cashier’s check is a check guaranteed by a bank, drawn on the bank’s own funds and signed by a cashier. Cashier’s checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying the amount.CERTIFICATE OF SALE
In many states, you will receive a Certificate of Sale at the live foreclosure auction after you pay for the property. Check you state’s procedures for details.CLEARED
When a foreclosure property is “cleared”, it means the property is approved for sale, and the auction is expected to proceed as scheduled. Many foreclosure sales get removed or postponed, so we recommend keeping your alerts on and checking the status of the property before going to the live auction.CLOSING
If you win a property auction, the closing process includes the final steps in your transaction. The closing process may take anywhere from 30 to 60 days and the closing date will be set by the contract. Once complete, the property ownership is transferred from the seller to the buyer.COMING SOON
When a foreclosure property has a “coming soon” status, it means the auction date hasn’t been set yet but is pending. Save the property to be notified when the auction is scheduled and for other updates.CREDIT BID
The Credit Bid is the estimated minimum amount required by the lender for a foreclosure property to sell at auction. If bidding goes above it, the highest bidder wins. If not, the lender takes ownership.COA
Condominium Owner’s AssociationCOUNTER BIDDING
Counter bidding is a common practice used by all major auction houses. Auction.com will counter bid on behalf of the seller in order to move the price closer to the Reserve Price or Credit Bid, which is the minimum that a seller will typically accept. Once the bidding reaches that threshold, Auction.com will no longer counter bid.D.
DASHBOARD
Once you create a free account, you’ll have access to your own personalized dashboard where you can receive emails, create lists of saved properties and receive email alerts for a specific property or properties in certain locations. You can also manage your bids from your dashboard.DEED
A legal instrument that confirms the transfer of a property’s title.DISCLOSING THE RESERVE PRICE
The Reserve Price is the lowest price that the seller is willing to accept. It’s up to the seller to disclose the Reserve Price. When the Reserve Price is disclosed, you can find it on the property details page.DISTRESSED RESIDENTIAL REAL ESTATE
These are homes that are either in a pre-foreclosure state or have undergone the foreclosure process and are now bank-owned properties. They also may become short-sales, in which the lender agrees to sell the home for less than what is owed on it.DISCLOSURE DOCUMENTS
Important property and legal documents that should be reviewed by interested bidders prior to the auction. Disclosure documents can be found on the property details page.DUE DILIGENCE
Conducting due diligence involves thoroughly investigating a property before you bid on it. It includes researching the estimated value, estimating repair costs, reviewing title reports, inspecting the property (if possible) and researching the surrounding neighborhood.DUE DILIGENCE ON AN OCCUPIED PROPERTY
Many of our properties are occupied by former owners or tenants so be sure to check the property details page to learn as much as you can. If a property is occupied, you can still do your due diligence with the exception of seeing the inside of it. You can drive by the outside to take photos and observe the neighborhood. You can also research the schools and crime rate. But please do not disturb the occupants or trespass on the property.E.
EARNEST MONEY DEPOSIT
A deposit placed by the bidder to let the seller know that the bidder is earnest or serious about buying the property.ENTITY
A separate entity is a structure in which the law allows a group of people to act as if they were a single person for certain purposes. Entities are most commonly used for property ownership, lawsuits and contracts.ESCROW
When the lender releases the home purchase funds around the same time that the deed is recorded to reflect the new ownership. Escrow opens when the buyer and seller sign a sales contract, commonly called a real estate purchase agreement.ESTIMATED DEBT
This is the total estimated debt, plus court-imposed fees, unpaid interest and legal costs owed by the homeowner at the notice of foreclosure sale.ESTIMATED CREDIT BID (ECB)
The Estimated Credit Bid is the minimum amount required by the lender for a foreclosure property to sell at auction. If bidding goes above it, the highest bidder wins. If not, the lender takes ownership.EST. RESALE VALUE (ERV)
The Est. Resale Value (ERV) is derived from an automated value provided by a third-party. It’s based on comparable sales of similar properties that are very well maintained and with no deferred maintenance. The Est. Resale Value (ERV) is critical because it helps investors calculate the difference between the “as-is” value, or price they pay for a property and the resale value, the price they can potentially get when they sell the property. It gives investors an estimate of their profit margin after all necessary repairs are made.EVENT
An auction event is a time slot when a group of similar homes are auctioned. To find out if properties are in the same event, compare the Event ID number from the Property Details Page to the Event ID on other properties and see if they are the same. Note: Only the first six digits need to match, the remaining digits are the Item number.F.
FCL Predict
These foreclosure properties are most likely to go to sale on their scheduled auction date.FINAL JUDGMENT AMOUNT
This is the final amount due when you buy a home at a foreclosure sale. It typically includes the remaining amount owed on the mortgage; accrued interest; attorney fees and advertising fees. There’s also the possibility that you may have to pay liens, taxes and other costs. That’s why it’s imperative to do a thorough due diligence investigation before you bid on a property.FINANCING
Financing a property means that you could purchase a property if approved for a mortgage loan that you would pay back in payment installments. Check the property details page to see if financing is available on the property that you are considering purchasing.First Auction for All
These REO properties are scheduled for a first auction in which all customers can participate.FORECLOSURE SALES
These properties are generally sold at live auctions. A foreclosure sale occurs when a lender attempts to sell a property to recover the balance of a loan.FULL WARRANTY DEED
A deed in which the seller guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the buyer.G.
GAINING POSSESSION OF A PROPERTY
When you purchase a property at a foreclosure sale, you typically can’t gain possession until you have a clear title, the deed is transferred into your name and the home is vacant. If the property is occupied, you may want to contact a real estate attorney for assistance.GENERAL PARTNERSHIP
A general partnership is an arrangement consisting of two or more people who agree to share in all assets, profits and financial and legal liabilities of a business. Members must sign a Partnership Agreement.H.
HOA
Homeowners’ AssociationHot Bank Owned
These bank owned properties are likely to be well-priced and sell quickly.Hot Foreclosure
These foreclosure properties are likely to go to sale and likely to be well-priced.HUD
U.S. Department of Housing and Urban Development.HUD-1 SETTLEMENT STATEMENT
This is a standard form which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate.I.
IN PROGRESS
When a foreclosure property is “in progress,” it means the auction is currently in progress and accepting bids. Bid now before the auction ends or enable alerts for live updates and see what it sells for.INCORPORATION (INC)
The process of establishing a company, city or other organization as a legal corporation, which is an entity that is separate and apart from its owners.INTERIOR ACCESS AVAILABLE
You can search for properties that allow interior access so you can see the inside of the home before you bid on it. Start by typing in the location where you would like to buy. Click on “All Asset Types” and go to “Bank Owned & Newly Foreclosed.” Then, in the box on the right, click on “Access Available” and you will see all of the homes that will allow you inside.INVESTMENT PROPERTY
A real estate property purchased with the intention of earning a return on the investment either through rental income, the future resale of the property, or both.IRA
An individual retirement account (IRA) is a type of an individual retirement plan that provides tax advantages for retirement savings. There are several different types of IRAs, with each having its own tax implications and eligibility requirements.J.
K.
L.
LAND
Property or real estate, not including buildings or equipment.LANDLORD
Any person(s) that rents or leases property to an occupant.LEASE
A lease is a contractual agreement between a tenant and landlord that spells out the terms of tenancy. This includes length of time for occupancy, monthly rent to be paid, responsibilities and rules. At Auction.com, you can bid on tenant-occupied rental properties that already have a lease in place.LIMITED LIABILITY COMPANY
A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities.LIMITED PARTNERSHIP
A limited partnership (LP) consists of two or more partners who operate the company jointly, and each partner’s liability may be limited to each partner’s level of investment.LOG-IN
When you sign into your account.LOG-OUT
When you sign out of your account.M.
MANUFACTURED HOME
A manufactured home in the United States is typically a home built in a factory that complies with HUD code standards. These standards were developed in 1976 so manufactured homes in the U.S. have been built after that year. Manufactured homes can be placed on private land or in a community with other manufactured homes and mobile homes.MAX BID
Max Bid lets you tell Auction.com the highest amount you’re willing to pay for a property, then we’ll automatically bid for you up to that limit. You can set a Max Bid before the auction begins or anytime while it’s live.MOBILE HOME
A mobile home in the United States is typically a home built in a factory prior to 1976 before the HUD code was established. Mobile homes can be placed on private land or in a community with other mobile and manufactured homes.MORTGAGE
A mortgage is a legal agreement that allows an individual to borrow money from a lender to buy property. Once the mortgage is paid off, the agreement becomes void.N.
NEWLY-FORECLOSE
These are properties on Auction.com that recently became available for auction, usually days after the property became bank-owned.NOW VACANT
These REO properties recently became vacant and were previously labeled as occupied.O.
ONE BID AWAY
Displayed on the bidding window when the highest bid is one bid away from reserve, this message alerts bidders that the next bid placed will meet reserve.One Dollar Opening Bid
These REO properties have one dollar starting bids and typically low reserves.ONLINE BIDDING
This is where a buyer participates in an online auction by placing bids.OPENING BID
This is the estimated dollar amount that starts the auction.OUTBID PERIOD
This is a term specific to properties won in foreclosure sales in North Carolina. The Outbid Period is a 10-day period in which someone can place a higher bid than the previous bid, usually 5% or $750 higher, whichever is greater. Each time a new high bid is placed through the county clerk, the 10 days start over. This process continues until no new bids are placed and the 10 days runs out.P.
PENSION PLAN
A pension plan is a type of retirement plan in which an employee adds money into a fund that is matched (or contributed to) by an employer, based on employee income and length of employment.POSTPONED
A foreclosure sale can be postponed for several reasons. Some of the more common ones include:- When a homeowner files for bankruptcy protection, this results in an automatic stay being placed on the property.
- The bankruptcy doesn’t stop the foreclosure but delays it until the homeowner resolves the debt, or the lender gets approval from the bankruptcy court to proceed with the sale.
- The beneficiary (lender) can postpone the sale for any reason. It could be simply that the lender is not ready to sell the property.
PRICE DROP
The reserve on these REO properties has recently been reduced.PRIMARY RESIDENCE
The home which is considered to be the main living location where the majority of the time is spent by an individual.PROFILE
Your profile is established when you create your account. It contains your name, physical address, phone numbers, email address and password.PROOF OF FUNDS (POF)
A document that demonstrates that a bidder has the funds available to purchase a property. All bidders will need a Bidder Qualification Form and be prepared to provide a recent (within the last 60 days) bank or brokerage account statement.PROPERTY DETAILS PAGE
This is the page on Auction.com where you can start your due diligence. It contains photos of the property; square footage; characteristics of the home; property reports and how to register for an auction or information on a live event. To get to the property details page, type in the location where you would like to buy property, then when you see the homes in your preferred location, click on a photo and you will be taken to the property details page.PROPERTY INFORMATION REPORT
This report summarizes neighborhood schools, crime and environmental factors affecting the property. When available, the report can be found on the property details page.PROPERTY INSPECTION REPORT
This report provides additional information about the property, neighborhood and may offer comparable sales. But it’s not an appraisal and its accuracy cannot be guaranteed.PROPERTY STATUS
This information tells you if the property is coming soon, scheduled, cleared for sale, or if the auction is in progress, has been postponed, or if the property was removed and will not go to auction. The property status can be found on the Property Details Page directly above the address.PUD
A planned unit development (PUD) is a residential community governed by a homeowner’s association. PUDs can consist of single-family homes, condos and commercial property, such as stores and restaurants. If you purchase a property within a PUD, you’ll most likely have to pay HOA dues to cover amenities such as a pool, playground or park. The dues can also be used to pay for security, landscaping and street lights.PURCHASE PROFILE
A Purchase Profile gives buyers the ability to save the information they provide during the online contracting process for bank-owned properties. This information lets Auction.com know how the buyer intends to vest the property. Saved profiles can be used for future purchases so the information doesn’t have to be provided again. Buyers can also access their Purchase Profiles in their dashboard.Q.
QUITCLAIM DEED
A quitclaim deed conveys the seller’s rights and interests in a property to the buyer. It does not, however, provide any warranties or covenants to the buyer. Many properties on Auction.com have a special warranty deed option which allows the buyer to purchase title insurance and receive a special warranty deed instead of a quitclaim deed.QR CODE
A QR code (quick response code) is a type of barcode that is used to provide easy access to information through a smartphone. Our app’s new QR Code feature was developed to help our customers expedite check-in at registration. Simply pre-register on the app and use the QR Code that is generated to check in at our in-person auctions.R.
REAL ESTATE AGENT
An individual who sells and rents buildings for a client. Real estate agents are welcome to help their clients buy property with Auction.com.RECEIPT OF SALE
A Receipt of Sale, also known as a Certificate of Sale, is typically given to buyers at a live foreclosure auction after the buyer pays for the property. But this practice varies from state to state. Check you state’s procedures for details.REDEMPTION PERIOD
A redemption period is a specific period of time during which foreclosed homeowners can buy back or “redeem” their property. If you purchase a property in a redemption state, you will not be able to evict the homeowner or tenant during the redemption period. Check your state’s guidelines to see if it offers a redemption period.REMOTE BID
Remote Bid is a feature within the Auction.com mobile app that allows investors to place bids on select foreclosure properties. Investors can submit their bids in advance and wait until the end of the auction to see if they won. Or, they can bid in real-time from their phone where live remote bid is available.REMOVED
A foreclosure property can be removed and not go to auction for several reasons. Some of the more common ones include:- When a homeowner and lender reach an agreement so the homeowner can keep the property.
- When a homeowner files for bankruptcy protection, this results in an automatic stay being placed on the property. The bankruptcy doesn’t stop the foreclosure but delays it until the homeowner resolves the debt, or the lender gets approval from the bankruptcy court to proceed with the sale.
- The beneficiary (lender) can decide to remove a property from going to auction for any reason. The lender may not be ready to sell the property, may sell it elsewhere, or may get paid off by the homeowner.