Page 51 - PROGRAM_2017_LSO_FINAL_online5

AUCTION RESOURCE GUIDE

owners of the property; the properties are usually
bought by the lender for the value of the loan.

2. In those “courthouse steps” foreclosure sales,
the buyers usually haven’t been able to get inside
to see the properties — the lender who is
foreclosing on the mortgage isn’t the legal owner
and doesn’t have the right to let people into the
home, he said. But in regular auctions, usually
the auction company will advertise the home for
several weeks and will conduct open houses, Levin
said.

“(Interested buyers) should want to come see
them with a home inspector,” Levin said. “If they
don’t, they certainly have to know what they’re
looking at, because in an auction, there are no
contingencies.” That is, the homes are sold “as is.”
It’s becoming increasingly common for auction
companies to partner with mortgage lenders who
will be present at the open houses for buyers who
need financing. “It’s a myth that auctions are
cash-only sales,” he said.

3. Most auction houses permit buyers to involve
their real estate agents, who will receive a
commission on the sale. “They can help (buyers)
determine the value of the property, they can tell
you what’s going on in the neighborhood, they
might be able to tell how the house compares to
other properties,” Levin said.

The auction company also should provide a
packet of information at the open house that
would include the required legal disclosures on
the condition of the house and a blank contract
the high bidder would be required to sign. Have it
reviewed by an attorney, Levin said.

4. At the auction, of course, the best advice for the
buyer is to decide how much he’s willing to pay,
and stick with that.

Before the sale begins, auction firms will require
bidders to present certified or cashier’s checks for
a designated amount, usually several thousand

51