Different Types of Auctions
You will see on the featured page auction page of our website many different auction types. The foreclosure / court ordered sales list page will only contain foreclosures & court ordered sales. Take a look at some of the common auction types below to get a general idea of what to expect if you were to bid on them.
Substitute Trustee's Sale
This is a foreclosure auction. The "Trustee" or "Substitute Trustee" is the authorized individual or individuals, who are acting as agents of the court, who oversee the sale process, making sure that the property is sold in a fair and equitable manner to the maximum benefit of all concerned parties.
Please keep in mind that these sales are involuntary sales. Unless the auction is being held on the premises, you are trespassing if you walk on the property grounds.
Although all foreclosure terms of sale are generally similar, each property for auction has a different and unique terms of sale. It is extremely important that you read the terms of sale, which is in the legal advertisement, before you bid so you can make an informed decision on your bid.
While on occasion foreclosure sales are held on the property's premises, they are usually held at the auctioneer's office or the county courthouse steps where the property is located. The location, date and time of the auction will always be in the legal ad.
In a foreclosure auction the Property is either sold to a third party bidder or is bought back by the bank/lender where it will end up in their real estate owned (REO) inventory.
A sale that occurs when a property owner dies and the personal representative in charge of the estate sells the real estate. Those who are heirs of the estate get the proceeds from the sale. If the owner dies without naming someone in their will to sell the property, an estate sale is called aprobate sale.
Typically, as a purchaser, you will be able to inspect the interior of the home before you bid. These auction sales are usually held on the premises.
Public Auction Sale
This is an auction where the owner voluntarily decides to auction the property as opposed to marketing it using a traditional listing. Since the sale is voluntary you will typically have access to inspect the interior of the property either at an open house, private appointment or 1 hour prior to the auction taking place. At the bottom of the listing page for these sales there will always be an auction agent you can contact directly to get more information.
If it is a commercial property, you can expect detailed rent rolls and copy of the leases so you can make an informed decision.
This auction type is very similar to a regular public auction sale but the seller happens to be a bank or private lender. These are voluntary sales where you will be getting free and clear marketable title and the property will be transferred to you free and clear of all monetary liens. Do not confuse these auctions with foreclosure sales. Due to the fact that they are voluntary you will typically have access to the interior of the property for inspection 1 hour prior to the auction. You are also guaranteed possession of the property upon settlement unless specifically noted otherwise in the terms of sale (which is a very rare occurrence).
These auctions are fantastic buying opportunities as the banks and lenders are typically very motivated to get these properties out of their Real Estate Owned (REO) inventory.