Can the bank reject the bid

Question

1. At the moment, I am a highest bidder on a Trustee Sale Auction (the trustee is a law firm) the starting bid was set at 194K and my bid is well above it (240K). Any chance that the bank who holds the mortgage will reject my bid ?

2. If there is no rejection, then when I will receive the notice that the bank approve my bid ?

Thanks

2. If there is no rejection, then when I will receive the notice that the bank approve my bid ?

Thanks

Courtney Kreutzer · Answer

I was just the highest bid on auction.com, sent in all my stuff and the bank rejected my highest bit.  Is there still a chance the auction place will offer it to me if it doesnt end up selling at auction? This is my first time doing this. The house was on the site three weeks and I was the only bidder everytime.

Lang Le · Answer

Wayne, You're right, this statement is in Auction.com website, I don't dare to even take a look thru the windows, and even I placed bid on the house but I still feel bad  for the owner who lost it.

Thanks for all your help on this issue. It is a big help to understand  this complicate matter

Wayne Brooks · Answer

More details would help.  This sounds like an auction.com, REO, "occupied" property.  I personally ignore the "entering the property is trespassing" language. It's not legally trespassing anyway.  I got one for a client last month with this language.  It was in fact vacant, and we saw the condition through the windows, etc.  could auction.com rescind the sale, possibly but unlikely.  I find that opproaching unknown occupants in a normal, friendly, courteous way has never had a bad outcome.  I ask them if they're of the auction (they are) what their plans are, would they like to rent it, etc.  never had an issue, yet.

Update: this post was in response to a different thread asking only about a "do not enter the property as it is trespassing...."  usually language we see in an auction.com REO auction.

Jon Holdman · Answer

@Lang Le I combined your two threads into one.

@Wayne Brooks this may make more sense now.

Joel Owens · Answer

This is a lot of money you are talking about. You really need to spend some times as mentioned with an attorney who is very familiar with this process.

Spend a couple hundred to save a possibly huge mistake.

Jon Holdman · Answer

Until the deal actually closes you have no rights at all with respect to this property.  Being declared winner isn't the same as closing.

Appears NC has a 10 day redemption period after the sale.  And requires you to give 10 days notice to occupants of the property before you start an eviction.  If they refuse to leave with the 10 days notice, you will have to do an eviction.

I'd STRONGLY recommend you spend a few hundred bucks with a NC foreclosure attorney and understand exactly the process you're going to have to follow if you do win.

Lang Le · Answer

Wayne/John : Thank you for the clarification. So they are two difference auctions, in my case is a Trustee Sale, therefore if no upset bid submit during 10 days period (NC law) then I will be a new owner of that property.

Next question: Can I "visit" the house after I been declared as a winning bidder . I drove by the house but don't even know the house is occupied or not.  If the owners are still there,  what should I do ?

John Hamilton · Answer

Thanks for clarifying, @Wayne Brooks

Wayne Brooks · Answer

@Lang Le

You are talking about the actual foreclosure(trustee's) auction.  References to the bank making a counter offer were referring to banks when they auction off properties, After they get them back at the foreclosure/trustee auction, through auction.com, HUBZU, etc.  It seems the bank set a minimum "take out" (the bank's maximum bid) bid of $194k, so yes if you're the high bidder at an amount above that, then it should be yours.  BK=bankruptcy.

John Hamilton · Answer

Well, you're right. It happens, is what I've been told. Though it's bad form and bad business and ethically wrong, however the lender can do whatever they want. But, there should be some kind of contract sellers/lenders sign with the auction company to keep everything up and up. If you have questions, I would contact them directly (Auctioneer) and pose your questions and concerns. They will tell you everything you need to know.