when someone goes to an home auction what does one has to take and how do one finance for the house bought?.?

Asked by Patty, Los Angeles, CA Fri May 15, 2009

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Adrian Huntington’s answer
Adrian Hunti…, Agent, SAN FRANCISCO, CA
Fri May 15, 2009
Is the home auction a Trustee Sale,or is it a Bank Owned Foreclosure Auction? Examples of Bank Owned Foreclosure (REO) auctions are, REDC, Hudson Marshall, and Williams& Williams. A Trustee sale you need to have cash. REDC and Hudson Marshall both require a certified check made out for $5000.00 for each house you plan to buy. At REDC they will explain whether the house can be financed, or is an all cash deal. Before attending the REDC Auction you will need to get a cashiers check for $5000.00. You will also need your regular check book if you plan on buying a house over $100,000. Bring your driver's license. I suggest getting a bank pre-approval letter before the auction. If not, Chase and Prospect Mortgage will be onsite. If you have the winning bid, they will ask for your pre-approval letter, or make you pre-approve with one of the onsite lenders. If you can't get bank approval, the home will be back up for auction the same day. Do your home inspection before the sale date. REDC and Hudson Marshall auction contracts do not have a Loan Contigency, or an Inspection Contigency. When you buy a home at a Hudson Marshall auction, you get 30 days to pay cash, or get financing. All offers are treated like cash. You must close once the contract is ratified, or you will forfeit your deposit. Both auctions have a 5% Buyers Premium added to the winning bid price. Just because you have the winning bid, does not guarantee that you will get the house. The banks asset manager has a minumum reserve price that he, or she will accept. It is different from the starting bid amount. I am a home auction frequent flyer.

Adrian Huntington
Coldwell Banker Coon & McCreary Realtors
1954 Contra Costa Blvd.
Pleasant Hill, CA 94523
1 vote
Celine F, , Louisiana
Fri May 15, 2009
Houses bought through auctions are usually cash purchases. Same day, 2 day, or up to a month for the buyer to close with cash. However, every county is different. Go there and sit through a few auctions and see how others do it.
Web Reference:  http://www.imminest.com
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