Auction escrow services are just one way to obtain real estate, whether it is a tax auction or a foreclosure auction. A decade ago, escrow auctions were largely limited to real estate investors and other professionals, but it is not uncommon today for non-professional home buyers to purchase their primary home or even a first investment property at real estate auctions.
There are two primary reasons for real estate to end up at a public real estate sale auction which include foreclosure or tax liens. If the original property owner defaulted on their mortgage, the lender may have taken possession and put the home up for sale at a foreclosure auction. The original property owner may have also owed a significant amount in federal or state taxes that resulted in the property being seized by the government and put up for sale.
After you win real estate at auction, you will typically be required to pay a deposit of 10% of the listing price, plus additional auction fees. As the winner of the auction, you must also go through the escrow and closing process, just like with a regular purchase. You will need to be pre-approved for a mortgage or financing before buying real estate at auction, because failure to close escrow means you will be liable for all expenses incurred during the resale of the property plus the deficiency if the real estate sells for less. Buying real estate at auction comes with many responsibilities, and that is why it is important to choose an escrow company that specializes in auction sale escrow to avoid potentially costly delays.
New Era Escrow will handle all aspects of your auction sale transaction. We will:
Before you buy real estate at auction, make sure you are prepared. New Era Escrow will proudly serve as your partner to ensure a problem-free closing, free of potentially costly delays.