FREQUENTLY ASKED QUESTIONS

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Why are properties foreclosed?

A property is foreclosed and sold at public auction when the owner breaches the conditions of the mortgage. A town or city can foreclose for failure to pay taxes.

Why are foreclosure auctions sometimes postponed or canceled?

Auctions are sometimes postponed or canceled when the owner comes to an agreement with the mortgagee or files for bankruptcy protection.

Why purchase property at auction?

Auctions represent a level playing field for all participants. However, properties are sold "as is" without benefit of financing contingencies or home inspections.

What should I do to prepare for an auction?

Prequalify Yourself :
There is never a mortgage contingency with a property being sold at public auction. You need to know what you can afford before you bid. Talk with your bank or mortgage company and become prequalified. If you are the successful bidder and cannot close within the number of days specified under TERMS, you may lose your deposit.

Research the Property:
Find out as much as you can about the property. The mortgage reference will be on our web site page for the property. Most Registries of Deeds are available online (see the link on our auction home page). Remember: the successful bidder at an auction is responsible for payment of all outstanding municipal liens.

Attend an Auction:
Check the local papers for auctions in your area. Attend and observe one or two auctions to familiarize yourself with the process. Bidding goes quickly and you need to feel comfortable with the format.

What do I need in order to participate?

• Arrive 15-30 minutes prior to the auction's scheduled start time.
• Have the required deposit in the form of cash, bank check or certified funds (see the TERMS section of the advertisement). Checks should be made payable to the Bidder.
• Register with the auctioneer upon arrival. You will be asked for your full proper name, address, telephone number and proof of deposit.
• Only registered bidders may ask questions at the auction.

Will there be access to the property?
Owners are still in possession of the property up to the time of auction and access is most often denied. There will usually be access to property which is vacant.

How does the bidding work?
Bidding is verbal and, in general, anyone can begin the bidding at any amount. If no one bids, the auctioneer or mortgagee will open the bid. In the case of a "MINIMUM BID AUCTION", the bidding opens at the amount specified in the advertisement. There will be a representative bidding on behalf of the mortgagee.

What happens if I am the successful bidder?
The highest bidder will be required to sign a Memorandum of Sale which obligates them under the terms and conditions of the contract; and endorse their check over to the bank's representative. The highest bidder will also be responsible for all outstanding municipal liens (taxes, water, sewer and interest charges) which will be disclosed prior to bidding.

What is the process?

•  Mortgagee's foreclosures are public auctions and are usually held in front of the property.
•  The auctioneer will qualify and register the bidders.
•  Registered bidders will be allowed to preview the property if there is access.
•  The auctioneer will read the Memorandum of Sale and Additional Terms.
•  There will be a question and answer period.
•  Bidding will take place.
•  Highest bidder completes the paperwork.

What is owed on the mortgage?
This information is not always accessible, however, you can research the mortgage at the Registry of Deeds for the original principal amount. Remember, if it is a second mortgage being foreclosed, the successful bidder will be responsible for paying off the first mortgage as well. The amount of the first mortgage is usually disclosed at the time of the auction.

What if the tenant has a lease or doesn't move out?
Most leases do not survive the foreclosure. It is the successful bidder's responsibility to evict any occupants.

AUCTION TERMS:

DISCLAIMER:
Be advised that all information shown on this web site, in the newspaper advertisements and the flyer which has been used for direct mail and/or distribution at the time of the auction sale has been compiled purely for the convenience and assistance of the prospective Buyers and while the information shown is assumed to be reasonably correct, it is not guaranteed and/or warranted by the Auctioneer, Attorney for the Mortgagee, nor any representative of the Mortgagee. All properties are sold "as is" and no representations or warranties of any kind whatsoever are made by or on behalf of the Mortgagee as to the condition, construction or fitness for habitation or whether it conforms to applicable state or local building and sanitary codes. Further, no representations or warranties are made by or on behalf of the Mortgagee concerning zoning, state of title, utilities, condition of the premises or otherwise.