EMD with Auction Properties Question

[Peyton LaBarbera]

At which point in the foreclosure auction process (Let's say once I am the winning bid on the property) do you have to put down an EMD?

And just checking, is the EMD requirement for foreclosure auctions 5% of the total reserve price?

Thank you.

[Samuel Eddinger]

@Peyton LaBarbera - From my experience doing foreclosure auctions in CT, you need to have a cashier's check for 10% of the "appraised value" which is defined in the foreclosure writeup.  

https://sso.eservices.jud.ct.gov/foreclosures/Public/PendPos...

As an example, you'd have to have a cashier's check made out to your own name for $25,200 (appraised value is $252,000).  You would hand that check to the lawyer who is performing the auction in exchange for a bidding number.  If you win the bid, you sign over the check to them and then you follow the rules or you lose your deposit:

PUBLIC AUCTION FORECLOSURE SALE: RESIDENTIAL ADDRESS: 94 JACOBS TER, MIDDLETOWN, CT 06457

Pursuant to a judgment of the Superior Court for the Judicial District of Middlesex in WELLS FARGO BANK, N.A. v. HOPKINS, CAROLYN Et Al Docket No. MMX-CV23-6038591-S the property named above will be sold, subject to court approval, at public auction on Saturday, May 11, 2024 at 12:00 PM on the premises. Anyone who wants to participate in the bidding, except the foreclosing plaintiff, must register with the Committee prior to the auction and present for the Committee’s examination a certified or bank check made payable to the bidder in the amount of $25,200.00 Qualified bidders will be issued numbers, and bidding will be conducted and recorded by those numbers. The Committee must collect all deposit checks from bidders when bidders register to bid. The successful bidder will be required to endorse the check to the Clerk of the Superior Court at the conclusion of the auction. A report of the results of this auction will be submitted promptly to the Court for approval. The successful bidder must be prepared to pay the balance of the purchase price within thirty (30) days after the approval of the sale. The deposit may be ordered forfeited if the successful bidder fails to complete the transaction within the thirty-day period. The property is being sold "as is," subject to no contingencies whatsoever. The Committee makes no warranties, either express or implied, concerning the property’s condition, and no adjustments will be made for any defects that may be discovered after this date. The Committee makes no representations of any kind as to the environmental condition of the property. All bids are to be based on the bidder’s own information and knowledge of the property, learned through his or her own efforts, and not on any representation or comments made by the Committee. The property is being sold free and clear of the lien(s) being foreclosed, and of all interests subsequent in right to that lien. The property is being sold subject to: All taxes due the municipality not foreclosed by this action, Water and sewer use charges not foreclosed by this action, All building and zoning regulations of the municipality which affect this property, All building lines, easements, restrictions and all other matters concerning this property which appear of record, The rights of any person in possession or occupancy of the property who have not been made parties to this foreclosure action, The right of the United States of America to redeem the property, if applicable under Federal law, Any other liens on this property which have not been foreclosed by this action. Further description of the property and further terms of the sale may be obtained from the Committee or from the court file.

SEBASTIAN J.SCALORA Committee THE SCALORA LAW GROUP 100 RIVERVIEW CENTER SUITE 285 MIDDLETOWN CT 06457