A public bank property auction is a great way to buy a property at a fraction of its market value. Banks typically ask bidders to pay a 10% earnest money deposit to secure a winning bid. This deposit is returned if the winning bidder does not receive the property. Winning bidders should also be aware of payment deadlines. For example, SBI auction terms require a 25% deposit on the next business day and the remaining 75% of the sale price must be paid within fifteen days. Missing any deadline can result in forfeiting the deposit.
In addition, bidders should be aware of encumbrance clauses. These clauses state that the property is sold “as-is.” This means the property is sold “as-is” – as-is. The responsibility of maintaining the property’s condition is up to the buyer.
Bidders should bring cash, cashier’s checks, or a money order to the auction. In case of a winning bid, it is advisable to buy title insurance. This policy protects buyers against undiscovered liens and other issues. Buying a property at an auction usually requires a large amount of cash. The requirements vary by auction house and county. However, some auction houses offer more flexible financing options.
If you have a mortgage on the property, you should pay off the entire balance before the auction. It’s also important to check if the home is still occupied. In the event of a sale, lenders are required to publish a notice of sale that includes the property address, date, and trustee contact information. If the homeowner files for bankruptcy within five days before the auction, the bank must postpone the auction. Likewise, if the homeowner fails to make the payment on time, the bank can cancel the auction.
