Thank you for visiting our web site and inquiring about our Real Estate Auctions. The majority of our Real Estate Auctions are Mortgagee’s Sale of Real Estate. Below is the description of a typical Mortgagee’s Sale , what you should expect and what you can do to educate yourself.
A Mortgagee’s foreclosure auction happens when the owner is in default of the mortgage under the terms of the Mortgage of record. The Lender (the bank, Mortgage Company or other) in this case will exercise its power and position under the statutes of the Commonwealth and start the foreclosure process. Unless otherwise noted all auctions take place on the premises (in front of the property).
Most of the time we do not have access to the inside of the property, therefore you are bidding on the property “sight unseen”. The subject remains private property until new ownership has actually transferred. You are always on or about the property “at your own risk”.
Find out as much as you can about the property. Call or visit the town/city hall in which the property is located. Find out what is owed to the town/city in real estate taxes, water and sewer charges. Helpful Departments in your search would be the Assessors Department, the Collector of Taxes and the Water Department. The registry book and page numbers that are included in the terms of sale in the legal notice (a/k/a the mortgagee’s sale of real estate) are public information. The book and page number will bring you to the original deed and mortgage. In most cases the book and page numbers are shown in the commercial display advertising usually located in the auction section of the newspaper.
Before you determine whether the subject is something you may want to purchase, drive by the property. View the subject the best you can. If there is a scheduled inspection of the property it will be included in the advertising. Take advantage of this opportunity. In most cases you can not get into the subject property because it is occupied by an owner or tenant.
Always take note of the required deposit and the acceptable terms. Always have the check made out to you. There are no exceptions to the required deposit so make sure you have the correct amount in cash, certified funds, bank treasurer’s check or cashiers check. If you are the successful bidder at the auction you will be required to immediately endorse the check that will serve as a deposit, and sign the Purchase and Sale Agreement.
The “Terms of Sale” will also state how many days you have to close on the property. It is likely that in most cases you will see 30 days. You should have your financing in place prior to buying. If for any reason you cannot obtain a mortgage or decide you do not want the property anymore you will be in default of your contract and you will lose your deposit and could even be responsible for other charges.
The auctioneer will be available in assisting you with the auction process. Most questions will be answered by the attorney for the mortgagee at the auction after the completion of the reading of the legal notice, memorandum of sale and announcement of the real estate taxes (MLC). There is always a question and answer period prior to the commencement of the bidding. The attorney and or the auctioneer will answer the questions to the best of their ability and knowledge. This is an opportunity for qualified bidders to ask any last minute questions they have relating to the property or the auction process.
Once the property is declared sold (to someone other than the mortgagee) the auctioneer will ask the high bidder to endorse the correct deposit over to the appropriate party and sign at least two copies of the purchase and sale agreement. At this time the attorney will be able to answer any questions relating to the closing. It is always a good idea to pick up a business card from the mortgagee’s attorney.
Feel free to get your feet wet. You do not have to go to your first auction ready to bid. Attend an Auction and educate yourself about the process by watching and listening to the process as it unfolds. Make sure you are ready and comfortable with the process before you attend ready to bid.