Auctions need to be bought all cash?

Question

Ive heard that foreclosed homes and auctions are a fantastic way to obtain great deals however I was under the impression you would need all cash for these. Is this correct? or do they accept financing?

Kyle J. · Answer

Cashiers checks need to be pre-filled so typically what you'd do is bring a number of cashiers checks in multiple smaller denominations (i.e. $10k, $25k, $50k, etc) and then just use them to pay for the property after the auction (for those that require immediate payment).

Michael Lee · Answer

Hello and welcome to BP!  I think that is right but I think you have a couple hours to pay in full.  I have only studied tax lien and tax deeds that go on auctions and they expect to be paid right away.   One thing they taught me, as your part of research, was to call the County and ask them.  Good luck to you!

Crystal Perez · Answer

I figured this much, Thank You!

Craig H. · Answer

ahh that makes sense.

Mike Landry · Answer

they will mail you back the difference if you over pay.

Craig H. · Answer

How could you ever have the right combination of cashiers checks? Something seems off with this. I do think I will call today and see what they say.

Craig

Ned Carey · Answer

Most auctions don't care how you pay, but for logistical reasons financing is rarely practical. In my area they do expect a certified funds for the deposit at the time of the auction, usually 10% of the bid price. Then you typically have 30 days to settle.

If you can't settle in 30 days you may not only lose your deposit but may be liable for any shortfall if they held a new auction and get less than you offered.

Craig H. · Answer

Calling and asking ... Hmm, now there's an idea. Haha.

Craig H. · Answer

I was actually wondering about this last night ... How in the world do you bring a cashiers check to an auction when you haven't even bid yet to know what the amount should be!? Haha

Auctions need to be bought all cash?

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