Many friends and clients have asked me about getting a “hot deal” at bank foreclosure auctions, as well as what these auctions are “all about.” I guess showing is better than telling so I shot this short video for you….or them…..or maybe YOU are THEM? Either way, I think you’ll enjoy it.

When we talk about bank foreclosure auctions we are essentially talking about 2 different types:

1. Trustee’s Sales – These are the ones you see or hear about on the “Courthouse Steps.” They literally occur there…on the steps of the County Courthouse. To actively bid you really only have to:

A – Show up

B – Bring a $5000.00 cashier’s check along with you. If you are the winning bidder, you have to be ready to close in 24 hours.  You better dang well have cash in hand or funding available immediately.

2. Bank Auctions – Here in St. George these take place either at the actual property or in some other location such as the Convention Center or a Hotel meeting space.  You have seen signs around town for these – Williams & Williams, Hudson & Marshall, etc.  The video above was taken at a recent Williams & Williams auction.

To bid on these properties you don’t haveto do much more than above, but the closing timelines are less stringent:

A – Register prior online OR onsite the day of. If you want to bid online you must register typically 24 hours prior.

B – Show up and confirm registration.

C  - Bring a $2000 - $2500.00 check. The difference here is that if you are the winning bidder, you often have up to 30 days to close. So YES, you can use a loan at this type of auction.

Do your Homework:

In either case, remember that you are entering in a binding contract when you go to an auction. This means you’ve GOT TO:

  • Research physical condition of property, title issues, etc
  • Have financing lined up. Planning to visit with a Lender for the first time AFTER the auction could cost you a few grand.
  • If you can, hire a Realtor. On the bank Auctions discussed in #2 above, the Seller pays the Agent’s commission so you are NOT paying more to have an agent, but you get the benefit of a professional who knows the neighborhoods, contracts, property values and carries liability insurance in the event of a (heaven forbid) legal dilemma.
  • Set a limit or "lid" on what you're willing to bid. If you say $100k, don't get swept up in the excitement and pay $105k.

These auctions are exciting - REALLY exciting, just make sure you are prepared in advance. Feel free to call or email me direct with questions about the auction process: 435-862-8467 or larkin@gostgeorge.com