I’m planning on attending a forclosure auction on the 19th of this month. If Im the winning bidder how long to I have to close the transaction? I asked the Clerk of Court in the county in which its to be sold and she said I would have to wait 10 days for an upset bid. Here’s my question…After the 10 day grace period for the upset bid, how much time will they give you to close? I was told it depended on the bank. I would need at least 30 days. Thanks, DDC
Hi DDC,
I’m not sure about your area, but here if you plan to bid on a home at the sale you must have certified funds on hand to pay the amount of your bid.
John
The notice in the news paper said a 5% deposit must be paid at time of sale. So I was wandering when they would want the 95%. I know I sound stupid but when I asked the Clerk of Court she said it was up to the Lender. I did’nt know if any of you guys had ever ran across this before. If its 30 days thats no problem. Since I hav’nt found a private investor yet I will need the time to do a regular mortage/closing on it. I know there’s money here to be made. I have the $$ to cover the 5% so thats not a problem. Thanks, for your reply. DDC
In the NJ counties where I’ve attended forclosure sales you need 20% in certified funds IMMEDIATELY upon being declared the winning bidder. Most experienced bidders come prepared with a “ladder” of certified checks so they can provide the Sheriff’s Office as close to 20% as possible without going over. This is because if you win the bid but the property is “upset” (in NJ properties can be “redeemed” by the owners for 10 days) it takes the Sheriff’s office up to 2 months to give your down payment back.
After the 10 day redemption period is over and the owner (or another investor paying the owner) does not redeem the property the 80% balance is due IMMEDIATELY on the 10th business day following the sale. In NJ it has nothing to do with the lender except they want their money IMEDIATELY. If you fail to come up with the 80% balance, the sheriff office keeps your 20% and reauctions the property. If the new auction price is less that your original offer price (minus the 20% plus fees) you are responsible for the difference.
I would dig a little deeper into your local regulations. GET THEM IN WRITING. Do not rely on what some clerk may tell you.
JMD