Buying at Auctions

[Jeanette Bartels]

I was wondering if anyone here in the Bay area has had the opportunity to go to a live auction to bid on foreclosures? I know that the one I want to attend in Pleasant Hill Community Center has a room with seats. The company Auction.com and it's affiliates rent a room out so it's not standing outside on the courthouse steps, which is better. To bid here, you have to come with all cash or cashiers checks for the full amount you're willing to spend.  My question is, does the cashiers checks have to come from one person, or can a group of friends pool in to pay for the cost of the one property?  Lets say they bring in their own cashiers checks, but is going in with you, but you only have so much for yourself, will the auctioneer clerks accept funding from your group of people to pay for the property? Does anyone know of this?

[Michael Medinger]

Regarding title at auction: I HIGHLY recommend building a relationship with a title officer and let him or her know what your plan is.  A good title person will happily give you a preliminary splat sheet a couple days before auction so that you can know if there are reasons to exclude on that basis.  Then if and when you win a bid, bananaphone your title person and get it insured.  You will have time to do so prior to payment.

As for availability of properties, they get either cancelled or delayed more often than not.  A buyer should go into an auction with several properties of interest, with due diligence performed well in advance, and (last but not least) have a cap on your highest bid.  The absolute worst thing a buyer can do is overpay at auction.

Well... the absolute worst is actually buying a property with a massive IRS lien on it, but again that's why you have your title officer on board.