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How To Auction Houses
It is free to register as a Foreclosure Member if you are eligible. If you are a Foreclosure Member and you sign up merchant service that ListARealestate.com provides, You can put your foreclosed properties on auction in this web site. Since the winning bidder will pay a percentage of the auctioned house property price to the auctioneer on line, the auctioneer does need our merchant service and there will be setup fee, transaction fees and monthly fee for the merchant service just like normal merchant service. One Merchant Account can be set up for all the on line sales of real estate properties located in all 50 States or a particular State or other States. The reason is that some States may require sales of real estate properties to be posted to a separate checking account. Bank may be required more than one Merchant Account if that particular State requires. Those fees are for merchant services, not membership fee or related to the use of listing or auctioning of house properties in this web site.
Only Foreclosure Member or Administration Member is allowed to put houses on auction in this web site. Only residential properties are allowed to be auctioned in this web site currently. We restrict Business Bidder to sign up and to place bid. Business Bidder can place bids residential and commercial properties.
Without signing up merchant service, Bank/Government branches can still list, not auction, their properties in this web site provided that they abide the Terms of Use.
1. You register as a Foreclosure Member. If successful, you will receive an activation email which is valid for 3 days.
2. You should click on the link inside the email and activate the account and login the Control Panel.
3. Foreclosure Member login and clicks on the Edit My Houses button and the Add House Items button and enter all the house information. The listed house is pre-set to be Foreclosed House, Sell By Owner and no Agent Fee.
In addition, the house must be located in the same State as the Member's branch office.
4.
Foreclosure Member should enter at least one Open House day before the auction closed so that the Bidder will be able to see the house condition.
5. Foreclosure Member clicks on Edit My Auctions button and Add Auction Items button and selects the listed house id and enter all the information for the auction house.
In the Add Auction page, there are a lot of explanations for the auction parameters and Foreclosure Member simply follows the instructions.
Some auction main parameters:
Auction type: Cash and Mortgage.
For Cash Type Auction, the Winning Bidder is required to make one time payment on line. For Mortgage Type Auction, the Bidders are required to be pre-qualified for a loan from a mortgage company in order for them to place any bid. The winning Bidder is required pay 1 % of the auctioned property price or $1000 (if 1% is less than $1000) on line and finish Closing procedure inside the Auctioneer's branch office.
Rank of Winning Prospect/Bidders can pay:
In case the highest Bidder didn't submit payment for the auction, other can pay. If that Rank is set to "2" and if the highest Bidder didn't submit payment after two days the auction closed, the 2nd highest Bidder will have the option to pay. If that Rank is "3", and if the highest Bidder and 2nd highest Bidder didn’t submit payment, the 3rd highest Bidder will have the option to pay. It is the same for setting it to "4", "5", etc. If the top three highest Bidders didn't submit payment when they had chances, the Auctioneer can suspend them. After the suspension, the Bidder can on longer to place any bid until they pay $100 reactivation fee to ListARealestate.com.
If the Bidders have no intention to pay for the auction house, they shouldn't place any bids.
Check Verification:
It is a service provided by merchant service with charge. The routing and account numbers of the to-submit-check will be verified. However, there will be a per usage charge to the Auctioneer for each time the winning Bidder clicked. There is a check verification submission counter for each auction item. If it is set to "1", the winning Bidder is allowed to submit check payment one time only. If the routing and account numbers fail on the first click, it will stop any further submission and any per-usage charge for that winning Bidder. Please see above Rank of Winning Prospect/Bidders can pay rules, the next winning Bidder will have same restriction for payment submission if the first didn't pay. Without Check Verification, if the winning Bidder makes a mistake in typing, the submitted payment will be rejected later typically 4 to 5 business days later.
Information to Bidder:
Anything that the Auctioneer wants to tell the Bidder.
Contract of Sale:
This is the legal real estate document for selling the house. |