Real Estate "Auctions"
April 21, 2008
In the current real estate market, there are "auctions" and there are "auctions".
The term "auction" in regard to real estate has traditionally referred to the foreclosure process by a trustee for a lender who holds a trust deed. In California there is a process in the statutes in which, after proper notices have been recorded, the property in default is "auctioned". The "auction" is held in a public location - usually the court house steps of the county in which the property is located. To bid at this "auction" the bidder/buyer must have the total amount of the bid in cash or in a bank cashier's check. The lender has the first bid which is typically in the amount owed by the borrower/owner.
There are also real estate "auctions" held by private auction companies. The homeowner can contract with these companies to sell the property at a public auction. Some of the properties auctioned may also be bank-owned properties.
In these "auctions" the owner/seller may set a reserve price and an opening bid price. These two prices are not necessarily the same. Usually to bid at these "auctions" the bidder must put a deposit with the auction holder.
A new "auction" process is the "Internet Auction". E Bay has entered this field as well as several other Internet sites. Some Internet auctions are held at the home site with a simulcast on the Internet for bidders who can not attend. Some Internet-only auctions are also possible.
In all auction environments, the bidders/buyers needs to inform themselves about the process and about the property for which they wish to make a bid. Buying a piece of real estate at an auction is a risky business and the need to be prepared is vital to being successful.
In the current real estate market, there are "auctions" and there are "auctions".
The term "auction" in regard to real estate has traditionally referred to the foreclosure process by a trustee for a lender who holds a trust deed. In California there is a process in the statutes in which, after proper notices have been recorded, the property in default is "auctioned". The "auction" is held in a public location - usually the court house steps of the county in which the property is located. To bid at this "auction" the bidder/buyer must have the total amount of the bid in cash or in a bank cashier's check. The lender has the first bid which is typically in the amount owed by the borrower/owner.
There are also real estate "auctions" held by private auction companies. The homeowner can contract with these companies to sell the property at a public auction. Some of the properties auctioned may also be bank-owned properties.
In these "auctions" the owner/seller may set a reserve price and an opening bid price. These two prices are not necessarily the same. Usually to bid at these "auctions" the bidder must put a deposit with the auction holder.
A new "auction" process is the "Internet Auction". E Bay has entered this field as well as several other Internet sites. Some Internet auctions are held at the home site with a simulcast on the Internet for bidders who can not attend. Some Internet-only auctions are also possible.
In all auction environments, the bidders/buyers needs to inform themselves about the process and about the property for which they wish to make a bid. Buying a piece of real estate at an auction is a risky business and the need to be prepared is vital to being successful.
posted by shirley harry at 8:07 AM
0 Comments:
Post a Comment
<< Home