auction.com earnest money

[Al Costner]

My husband and I are looking to buy our first foreclosure with cash from auction.com. The property is 285000 as a reserve, but we are hoping we can get it for 270k since no one has bid on it in the last year (fingers crossed?) I know that sounds high, but these houses new sell for upwards of 360k, so we are hoping it's worth the investment.

We have studied the info on auction.com and know that our 5% earnest money will need to be wired to the bank soon afterwards if we get accepted. However, say that the home inspection reveals significant issues with the plumbing or whatnot. Can we get that earnest money back from the bank? Is that something we work out with them ahead of time?

[Aaron H.]

Depends on the specific auction as well as the contract you sign once you win the bid - the terms vary based on the bank, the state you're in, the property, etc. Some Auction.com properties even sell without an inspection contingency.

Highly recommend you read the fine print, and contact Auction (or the listing broker they're working through, if you can find it) to double check the details on your specific property.

In general, though, yes - you usually get your earnest money back if the deal falls through.