Online foreclosure auctions faster, riskier
From The Real Deal
By The Real Deal, Monday, March 22, 2010.
Editor's note: This article is reposted with permission by The Real Deal. Click here to view the original article.
By ALEXANDER BRITELL
Like its neighbors, Broward County, Fla., is starting an electronic auction system that some real estate brokers say will speed up the process but poses risks for buyers.
"It's like eBay!" one workshop attendee said in the fully packed foreclosure auction room at Broward County Courthouse Thursday.
The woman was one of nearly 50 attendees at a workshop run by the Broward County Clerk of the Courts to explain the process to potential bidders in the county's new online foreclosure auction system, to replace the live one March 30.
At yesterday's workshop, the clerk's office showed potential buyers how to make live bids and proxy bids, which allow people to make offers in advance.
The new Web site, www.broward.realforeclose.com, is hosted by www.realauction.com, which also provides the software and customer service.
Bids require a 5 percent deposit of the bid amount, and failure to pay the full price by noon the next day means buyers forfeit their deposits.
Broward's move to electronic auctions follows a similar move by Miami-Dade and Palm Beach counties, which both switched in January.
Many attendees asked similar questions, usually centered on whether their bids are private -- which they are -- and the process of beating the bank's bid.
Plaintiff banks can post a so-called maximum bid -- meaning once bidding exceeds that number, the bank cannot bid further.
Most importantly, prospective buyers must sign an electronic "buyer beware" agreement saying that they have done their research, including inspecting the property, and that it is their responsibility, not the clerk's, to check for other liens on the home. ...CONTINUED
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Submitted by Jim Hodson on March 22, 2010 - 1:14pm.
Buying foreclosed properties can have some risk averted by working with local agents and having open access to an Appraisal, BPO and/or Contractor Opinion before an offer is ever made. The next generation buyer understands that unlike buying a widget on eBay, the price offered for an "As-Is" property needs to be inclusive of one's personal risk threshold. Smart home buyers ask, "What discount is worth the risk?"
http://tinyurl.com/countdowntobuy-house-or-risk
That is why great values can be found for those who know how to price risk. The business model of pre-contract transparency to reduce risk, coupled with an offer management system to get buyers to their highest threshold in a timely manner is perfect for this uncertain market environment.
Jim Hodson - CEO Countdown To Buy
http://www.countdowntobuy.com