Questions when buying from Auctions..

[Amir Saeed]

Hello

I had a chance to attend a live auction today, though it was fast but I learned a lot. The trustee and other team members were quite friendly. Few questions I have fro the Pro. They mentioned that when the property is bought (win the bid) I will have to start paying the interest from the day I win the bid to when the Bank finalizes the property. Basically the Bank want to recover as much money as possible.

The interest is based on what (not the rate) what is it based on, the winning Bid price? meaning the total bid price of the property? E.g if the initial deposit required was $10K, and the property was sold for 50K. The interest will be charged on the remaining 40K? until the bank finalizes the property?

What if I pay the bank 50K right away. I have to anyway... I assume there will be no interest?

Since I have some time from the initial deposit to when the Bank finalizes, is it possible to get financing from the bank for the remainder amount e.g in the above case for 40K, or no Bank would finance it since its an auction property.

Last...I was told to do my homework before bidding e.g look at any outstanding liens..etc. if there are any outstanding liens on the property, wouldn't the Bank clear them, because the bank cannot sell the property until the title is clean?

Please advise...with your expert opinion.

Thanks..