FAQs

How does an auction work?

The easiest answer would be "It works fine, thank you" however there is no easy answer for what is the most commonly asked question. If you wish to bid, the basics are that you need to complete your due diligence prior to sale time, read the sale terms, bring a deposit amount specified in the auction terms and be prepared to settle within the specified period. As to the details, every auctioneer and State has their own customs and formats for conducting an auction sale. You need to attend various sales, observe and ask questions at sale time.

What is the difference between a Trustee's sale and any other auction sale?

A Trustee's or Substitute Trustee's sale is typically a mortgage foreclosure sale initiated by a lending institution when a borrower defaults on their mortgage. The terms and conditions are advertised in a "legal" newspaper within the jurisdiction where the property is located. Any other auction sale would be captioned as an Owner's Sale, Estate Sale, Partnership Dissolution Sale, etc. These sales are not overseen by the Court or a Judge. The full sale terms are generally on the Auctioneer's web site.

When do I need to settle the property?

The terms and conditions spell out when a property needs to be settled. Foreclosure sales require a settlement date within a certain number of days after the sale is ratified by the Circuit Court. In most jurisdictions, ratification takes from 30-45 days to be completed. With regards to non-judicial sales, settlement can vary from 30-60 days. You will need to consult the full sale terms or auctioneer for the exact number of days required for settling a non-judicial property.

Can I inspect the interior of the property before an auction?

Non-judicial sales are typically available for inspection prior to or on the sale date. Inquire with the auctioneer when the property will be open. Since most foreclosure sales are conducted on the Courthouse steps, the auctioneer and Trustee has no access to the property. If you have access to MRIS, there is a possibility that the property could have been listed in the past ten years. MRIS archives old listings regardless of whether they sold or expired. This will provide basic descriptive information. Other sources available for free are the State Department of Taxation or the Maryland Land Records web sites.

What closing costs are the purchaser's responsibilities?

Regardless of the type of sale, the purchaser is responsible for all closing costs. Certain terms and conditions regarding expense adjustments will vary between sales as well as interest accruing from the sale to settlement date on the unpaid purchase money. The prospective purchaser needs to read the terms carefully, consult an Attorney, or inquire with the Auctioneer or Trustee regarding any questions.

How is the deposit amount calculated and whose name is on the deposit check?

Many assume that the deposit amount is 10% of what is owed, however that is not always the case. A cashier's or certified check is typically required in order to qualify to bid at an auction sale. The check should be made out to yourself. If you are the successful bidder, the check can be endorsed to the auctioneer or Trustee.

What happens when I purchase a property at a foreclosure sale that is occupied?

It is your responsibility for evicting the occupants. Most leave on a voluntary basis; however, when that is not the case you will need the Sheriff to evict the occupant. You may need to hire an Attorney to complete this process.

 

How long does it take to auction off my property?

A typical auction is advertised for 3 weeks and settles 45 days after the auction takes place.

Does it cost me anything to auction my property?

The only charge the seller is responsible for paying when auctioning off their property is the advertising fee. This is the cost for placing the ads in print publications. The cost varies on the specific marketing plan that we choose to follow. After briefly discussing what kind of property you would like to auction one of our associates can give you an estimate of how much your property would cost to advertise.

Does Alex Cooper Auctioneers Cooperate with agents?

Alex Cooper Auctioneers cooperates with buyer and seller agents in special cases. Contact an Alex Cooper representative for details.

No, you are required to have a deposit in the form of cash, bank check (cashier's) or certified check.