earnest money

[Anton De Vries]

2 questions about earnest money during foreclosure.

When bidding on a foreclosed home on the court steps,when your the winning bidder, and your bid is recorded, you place your earnest money. In NC there is a 10 day period for upset bids. During that 10 days someone outbids you. If you chose to rebid do they apply that earnest money you already put down to your new bid? And you just pay the difference?

Same question with auction.com?

New to this and just need someone to shed some light on this subject

[Randy E.]

Originally posted by @Anton De Vries:

@Alex Franks

The process makes no sense!

 Actually, it makes all the sense in the world.  The process is to allow the city to generate the largest amount of money possible.  Allowing for a generous upset bid process provides more opportunity for a higher sales price.

I agree that as an investor, the process is exceptionally frustrating.  But from the city's perspective, it makes sense.