In my experience you have to have a cashiers check for deposit at a public auction i.e. Hudson Marshall.

Steve is very correct on court house auctions.

Best,

Besides what Steve has already laid out very clearly and succinctly, you should know that most properties sold at auction may not qualify for title insurance. So you are not guaranteed free and clear title. That's a big consideration.

With so many bank-owned properties listed on the MLS today, you certainly would have many choices. If you aren't working with a realtor already, you should. Your realtor can research properties based on the criteria you specify, and can give you a bit of background information on the propery, how much it last sold for, comps in the area, etc. Also, some properties for sale aren't necessarily bank-owned or short sales, but are priced aggressively to compete for buyers. So you may find one that would be less trouble to negotiate.

Using a realtor, you'd be armed with good information in your decision-making. Whereas at auctions (specially at trustee sales), you wouldn't have an opportunity to research the property before you bid.

Hope this helps,

Good luck.

Hi Melanie, the answer is no, auctions are a different thing all together and they do not want any possibility that the house they just sold does not close escrow due to any last minute lender issues. There are really two types of Auctions.

Type 1: Trustee Sale - If you are looking for actual Trustee’s Sale auctions, they are published in the newspaper on a weekly basis under “public notices.” Notices are also typically posted at the entrance of the County courthouse. "Loans" need not apply: California state law requires liquid funds when your bid is accepted. The Trustee accepts cash or cashier’s checks (and nothing else). Most who do this on an ongoing basis will go to the auction with several denominations of cashier’s checks up to the amount they are willing to pay for the property of interest. Any set cashier's check overage will be returned to you. Condition of the property is a major concern.

Type 2: Auction Company - These auctions allow the bank(s) to unload lots of properties faster in this "bid-up" environment. It's really more of a pressure sales environment. I'd stay clear of these sales-oriented auction properties. Although you do get some time to do inspections, this is really a process for someone who can walk into a house and know what it will cost to place it back into shape. You can pay to have inspections done, but this might cause you to bid up the price of the home during auction time so you don't waste your money paid for the inspections. Really, there's no reason to be in an environment whose sole purpose is bidding-up a property's price in these times.

I would advise seeking an REO property, which is when the Bank is holding the property. They are very motivated to sell and this works in your favor. I have been sucessful in negotiating 22% off asking price on a REO. If you would like to learn more, or have questions, please contact me.

Best, Steve