Non-Refundable Bid Down Payment

[Jon K.]

Hi All,

New poster, but have been reading the books/listening to the podcast for a while now. Looking to make my first investment, but haven't found anything in my area that would fit. I just saw an ad in the newspaper that a local town is selling a house which it appears the previous owner abandoned/didn't pay taxes on (no specifics listed other than needs a new roof). Thanks to BP I know how to check for liens/estimate costs to rehab, but there's one thing in the ad I'm unfamiliar with.

"Each bid . . . must be accompanied by a non-refundable down payment which shall be in the form of a certified or cashier's check in the the amount of 10% of the bid . . . "

Am I correct in reading this as "non-refundable if you purchase the house" or does this mean "non-refundable even if we don't accept your bid"?

Wanted to get others' experiences in buying houses this way as well. Thanks in advance!