Let’s start with “Why to buy at FDIC Auction?”
This was live only auction, so you were not bidding against the world as on live + Internet auctions, and the most important was that the majority of properties are to be sold Absolute. No reserve, no wasted time driving to the auction place only to find out that reserve was not met.
You really can make very good deals there. Check Hudson & Marshall. They are conducting live auctions of FDIC properties around the country. Check their schedule; look at the list of properties for sale. All of them are currently listed, but if sold at the auction and the auctioneers will do the contracts right after you are the winning bidder. Of course, do your own research.
If you go to the auction, print out the list of properties that you might be interested in with their numbers. You will need them
Bring a cashier’s check written to you, or a money order. If you win, you will endorse it and give it to the auctioneers.
You need to pay 5% of the purchase price at day of the auction or $2,500, whichever is more. If it is more than $2,500, you can write them a personal check for the difference.
Purchases for under $10,000 should be paid for at day of auction. More than $10K – you have 30 days to close.
It is more involved if you are taking title in a company name or Trust. Then you would have to provide Articles of Incorporation, FEIN #, trust docs, proof of signing authority…
You can represent the Buyer as agent (except for listing agents). Make sure you register yourself as agent.
If you are buying for someone else, and they are not present, you will need a notarized specific Power of Attorney at auction registration.
If you win, you will have to pay 5% Buyer premium on top of the winning bid.
You will be asked for your Social Security Number as per Office of Foreign Assets Control (OFAC) regulation. All this is shredded right after the auction.
Keep in mind that the due diligence does not start with winning the bidding. If you want to preview the properties prior to the auction, you can try to arrange it either with your agent, or, if you do not have one, call the listing agent, or even the Auctioneers.
The deal s that are there can be a surprise. At the auction that I went to on Saturday, the lowest winning bid for a lot was $300. I do not know where this land is, but still it was a steal anyway.
This is a good opportunity for you to buy for yourself. You would hardly beat those deals anywhere else.
Remember, Auction is the media. No matter how lucrative it looks, if you do not know everything about the property, do not bid. It is not Las Vegas, and you should not gamble.