Foreclosure in South Elgin>Question Details

Cheri, Home Buyer in Elgin, IL

Regarding Kane County Real Estate Auctions...Is the Judgement Amount The Starting Bid?

Asked by Cheri, Elgin, IL Sat Jul 25, 2009

I notice they want you to have at least 10% liquid in order to bid - but with so many different prices due to the judgements it will help to know how they start the bidding?

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That's the name of the game. You have no idea what the bid is until the auction day.
You have to look at comps, check with recorders office for leans, and come up with a maximum bid you are willing to pay.
0 votes Thank Flag Link Wed Apr 13, 2011
Hello Cheri,

My experience has been that the judgment amount will always be the opening bid. It is pretty rare to see a home at auction that has any equity. You do need to pay 10% of the final auction price if you win the bid and then the balance within 24 hours.

Buying a property at auction does give you the opportunity to get a great deal. There are also some pitfalls here. When you buy a property at auction, there is no guarantee the title will be free of all encumbrances. For example, if the IRS has a $50,000 tax lien on a property that you just purchased at auction, you just became responsible to pay that $50,000 to the IRS! If you plan to buy a property at auction, there is a lot of research that needs to be done prior to bidding.

I hope that helps! Feel free to post any additional follow up questions.

Good Luck!

Chris Clark
0 votes Thank Flag Link Sat Jul 25, 2009
I am direct linking you several articles I have authored regards auctions. I hope assist in your participation…

I have had sooooooooooo many families across the country contact my office they did not know what they were doing purhcased a home.... lost everything they had !

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0 votes Thank Flag Link Sat Jul 25, 2009
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