Auction.com: Confusion over Contract Execution

[Adam S.]

I'm getting conflicting information from Auction.com about the status of a contract I submitted after winning an REO auction.

About two weeks ago, I saw a desirable property marketed through auction.com, and after my due diligence, I decided to compete in the auction.  I won as the highest bidder; though, I did not meet the reserve price.  A contract specialist sent me a contract to sign, and I noted that the contract wanted me to use Servicelink as the closing agent.  I've heard enough bad stories to want to avoid Servicelink, so I decided to use a local closing agent and changed the contract to reflect my choice of closing agent.  I then emailed the signed contract to my contract specialist at Auction.com.

This is where the confusion starts.  Within an hour of sending in the contract, I received the below email from auction.com: 

"In accordance with the Terms and Conditions of the auction event, as well as the specific terms of the Purchase Agreement with Joint Escrow Instructions and the Addendum to Purchase Agreement with Joint Escrow Instructions “SUBJECT TO” dated (the “Agreement”), the acceptance of your winning bid and purchase of the Property was subject to, and contingent upon, the Seller approving the purchase.

This letter shall serve as your written notice that the Seller has advised us of the acceptance of the terms of the Agreement. Please proceed with the necessary steps required to close this transaction as escrow is anticipated to close on or before forty-five (45) days from the date of Seller’s acceptance as set forth in the Purchase Agreement and Addendum to Purchase Agreement."

This email states the contract is accepted and to proceed with the closing.  I call auction.com, and the contract specialist claimed the email simply meant my offer price was accepted.  However, the contract specialist stated the contract had not been "executed".  He said to expect a signed contract to be sent over in the next week, starting the clock on the official 30 day closing period.  

Do I believe the email or the auction.com contract specialist? Also, the seller does not have a clearly designated representative.  A week has gone by, and I'm concerned that I'm wasting time not initiating the closing.  Also, if the closing period exceeds 30 days, I'm charged $50/day.  Also, I want to leave plenty of time for the closing to thoroughly clear the title and obtain title insurance.  

Has anyone had any experience with a situation like this?  Any recommendations?   

[Percy N.]

When I bought a property from  a similar site to auction.com, the clock started once the contract was executed. 

However, if you are ready to go, why not start the closing process. If this is a cash transaction, it should not take more than 3-4 weeks.

If you have your ducks in a row and  the seller still has to postpone the closing date, then at least you have a claim for them to waive the closing delay charges.

[Wayne Brooks]

The email is the same as a verbal acceptance, it's not enforceable until you receive the contract executed by auction.com.  However, this is just procedural, and I'd expect to receive it soon, and proceed.  I absolutely agree on using your own title insurance co.

[Adam S.]

Thank you for the clarification. I really hope the deal goes through. I do think the wording of the email is a bit misleading.