How to buy at FDIC Auction.

Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

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.


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
ActiveRain Community
Out Of The Box!
Silent Majority
Advice for Buyers
jon zolsky

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Fred Griffin presently on Leave of Absence
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Good information, Jon.

I have seen people get deals at auctions.  But I have also seen people get caught up in the excitement, and pay way too much.

Be as informed as possible, and stick to your limits.

Oct 24, 2010 05:26 PM #1
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Fred - that's a good advice. People should not get carried away. Set the limits and stick to it. You will be better off walking away from the deal, than start fighting for it and run up the price

Oct 24, 2010 05:29 PM #2
Michael C. Price
Keller Williams - Ann Arbor, MI
Ann Arbor-Real Estate Strategist

It is important to know the values before going in and then to set the limit.

Oct 24, 2010 05:33 PM #3
Brent & Deb Wells
LivingWell Properties - Prosper, TX
Prosper TX


Good stuff thanks for the breakdown. I know I would blow my budget with some of the properties they have. Must set limits or I would be doomed.


Oct 25, 2010 01:40 AM #4
Vadim Zolotarevskiy
FunCoast Realty & Management, LLC - Daytona Beach Shores, FL

Yes, I checked the prices for the lots in Ponce Inlet, and see what they were sold for, it is amazing.

Oct 25, 2010 02:06 AM #5
I Pike
Ormond Beach, FL

Jon, auctions are not for everyone. It is so fast, so intimidating, so difficult to follow and understand, not for me.

Oct 25, 2010 02:09 AM #6
Mike Saunders
Lanier Partners - Athens, GA

Jon - great list of things to prepare for when going to a real estate auction. And it is important to remember not to get caught up in the flurry of bidding.

Oct 25, 2010 02:28 AM #7
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Jon, Can I assume the property comes with 100% clean title every time?

Oct 25, 2010 04:50 AM #8
Matt Grohe
RE/MAX Concepts - Des Moines, IA
Serving the metro since 2003

Jon: I have been aware in the past that these types of auctions are going on but I had forgotten about them. Thanks for the reminder of this segment of the property market.

Oct 25, 2010 04:42 PM #9
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Thanks everyone. As I said, I was not really prepared for this, because I assumed that if it is owned already by the Lender (or whoever insured the Lender like in this case FDIC), there may be no issue with taxes or maintenance fee, and I did not even check it during the week, when i could reach the association management for the Plaza Resort & Spa.

I had trouble getting the taxes on the phone, it was not leting me there, so there was a dose of uncertainty after my client won the bid at $31,500.

However, when I got to the computer, the county server was already up and running, and I saw that the taxes have been paid. At this moment I was practically sure that the maintenance fee was up to date.

I called Plaza in the morning and left a message, and soon got the e-mail from Katherine Martin, and I find real pleasure working with her, and she confirmed what I expected. Balance is 0.

Oct 25, 2010 05:02 PM #10
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!
Jon Very interesting. I really got a lot out of this blog post.
Oct 26, 2010 04:42 PM #11
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Tom - glad you did

Oct 26, 2010 06:04 PM #12
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Jon, would you advise attending an auction like this before ever making a purchase? Seems like you could learn a lot just by going there and watching...I also learned a lot from this post. Glad your client won the bid :)

Oct 27, 2010 04:57 PM #13
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Sharon - thee are some people that should not participate ever. They are gamblers, and start getting angry that someone else outbids them, and then "punish" the other bidder by paying too much.

With foreclosure auctions in the county court, I went there a few times just to gauge it, and I am glad I did.

FDIC auctions are easier in that sense, because here you know what is the property, They show it on the screen, and you can check with the book that they give you. You can participate and not fail even the first time.

Oct 27, 2010 05:07 PM #14
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Jon Zolsky, Daytona Beach, FL

Buy Daytona condos for heavenly good prices
Ask me a question
Spam prevention

Additional Information