FAQ - Frequently Asked Questions

  1. Who attends an auction?

    Auctioneer, noteholder or representative, possible buyers, owners of the property, real estate agents, curious people who may be interested at a later time.
    (see questions)

  2. Who is selling the property?

    A trustee that represents the bank, lender, and/or note holder who holds the lien or title on the property being auctioned or sold.
    (see questions)

  3. Am I getting free and clear title to the property? What D.C. Offices do you check with to determine if there are liens against the property?

    Yes. A title search is processed at the Recorder of Deeds Office prior to the sale to make sure that there are no conflicting liens on the property.
    (see questions)

  4. How do you bid?

    After the opening bid, bids normally go up by $10,000, then $1,000, then $100. You bid by raising your hand in response to the auctioneer’s request for a particular bid.
    (see questions)

  5. Do I need to register to bid on a property?

    No registration is necessary. Just show your deposit and raise your hand to bid at the time of sale.
    (see questions)

  6. Do I need a bidder card?

    No bidder cards are necessary just raise your hand to bid.
    (see questions)

  7. How is the opening bid set?

    It is set by the note holder based on various criteria that are too numerous to describe.
    (see questions)

  8. How much money do I need to bid at the auction?

    You must have the deposit indicated in the advertisement, in cash or cashier check payable to auctioneer, or to yourself.
    (see questions)

  9. How much is the deposit?

    The deposits vary . Check the Washington Times and the Washington Examiner ads or our list of sales for details.
    (see questions)

  10. Can I see the inside of the property?

    The interior of the property is not accessbible. Prior to the foreclosure process the property is still in the hands of the current owner and access is not available.
    (see questions)

  11. How much time do I have to get financing on the property?

    30 days.
    (see questions)

  12. Can I inspect the property prior to the auction?

    Only the outside of the property can be seen prior to the auction sale.
    (see questions)

  13. How long does each auction last?

    Each sale takes only a matter of minutes. The average time runs from 5 to 20 minutes.
    (see questions)

  14. What are your responsibilities once you have bid?

    You can bid if you are the successful bidder present with a bank check in an amount of the Deposit (or cash). To complete the closing of the property within 30 days you must order a Title search from a Title Company or Law Office. You may want to place Hazard insurance on the property. For example, in case of a fire you will receive the property in the same “as-is” condition as the day of the auction.
    (see questions)

  15. Given the demand to close within 30 days, is this a cash-only process?

    Banks do not lend without a formal appraisal of the Physical property. This is a cash-only sale, so you must have your financing arranged. It is correct that you must have an appraisal for conventional financing. Conventional financing is not practical for this kind of purchase.
    (see questions)

  16. Once you have bid and the bid is accepted, what can invalidate the Sale?

    The trustee can invalidate the sale for any reason he or she deems appropriate as long as they return the deposit. Note that the only obligation of the Trustee is the Return of the Deposit.
    (see questions)

  17. What happens if settlement is not completed?

    In most cases, the bidder loses the deposit and may be sued for the lender’s loss if the property is resold for less money.
    (see questions)

  18. Who is responsible for settlement?

    The purchaser is responsible for settlement.
    (see questions)

  19. Why is the sale of a property cancelled or postponed?

    For many reasons, including bankruptcy, reinstatement, court order, etc.
    (see questions)

  20. What happens to the property when a sale is postponed or cancelled?

    The property remains owned by current title owner.
    (see questions)

  21. What are the benefits of buying a foreclosed property?

    Being able to purchase at or “below market” price or value…this is important to know the market and not to,” overpay” for the property.
    (see questions)

  22. What are the risks of buying a foreclosed property?

    Listed are some risks on buying a Foreclosure: property is purchased in “as is” condition; buyer often does not know if there are tenants or on-site owners; buyer is responsible for evicting tenants/resident owners, etc; and financial and legal risks may occur when buying a property with residents that may reside in the property. Of course, there are many other risks involved, therefore, consulting an experienced attorney or Real-estate agent/broker for more details.
    (see questions)

Important Notes:

These questions are provided as a courtesy and are merely a rough guide to buying at a foreclosure auction sale. The auctioneer(s) cannot and will not be responsible for any instruction on purchasing properties at a foreclosure auction/sale.

Should you have any other questions, do not hesitate to contact us.