Pehaps somebody from that area will answer. I am guessing here, but you stated one needs to pay 25% of the “sale price,” not the “opening bid.” So, the investor probably brings a check for 25% of the maximum amount the investor is willing to pay for the property. Or perhaps several checks: one for 25% of the opening bid, plus a couple of other checks, say for $2K and $4K. These would allow bidding up to $124K.
Foreclosure investors carry around checks much as you would have several bills in your wallet when you went into a store. Only, their “bills” have three extra zeroes after them.
I am interested in a property that is going to be sold at a foreclosure sale in Illinois.Bidders must have a certified check for 25% of the sale price and the remainder due in 24 hours. What does the bidder do if the property has a $100,000 judgement and at the auction the property sells for $125,000. The bidder has the funds to buy the property, but brings a certified check for $25,000. Will the auctioneer allow the bidder to bring the extra money within 24 hours or does the property go back into the auction. How is this situation resolved.
Thanks
Don
You may need 100% at auction, better check? - Posted by Mark_IL
Posted by Mark_IL on November 06, 2002 at 15:40:11:
Check with the firm processing the foreclosure. Some require 100% at the auction. I think Pierce & Assoc. and Heavner have recently changed their policy to 100% at the auction table.
If the sheriff is selling and requires a deposit of 25% of bid then you must have a cashiers check that is equal to or more than 25% of the your max bid. That is $31,250 for 125k max bid.
During the bidding process you will be challenged by other investors or the auctioneer for proof of funds that match or exceed your bid. Everyone will need to prove they can meet the requirements (25%) or they will not be allowed to bid.
It is a real good idea to sit in on an auction or two before you try bidding at one.
Posted by Jim - Aurora on November 06, 2002 at 01:21:37:
Out in Kane County, the Sheriff requires 10% down of the SALE price and the balance in 24 hrs. The sale price is the highest bid amount determined by auction, not by any outstanding debts prior to the auction. That said, there are always the caveats of other leins that may be senior to the foreclosed note. One good thing about Illinois is that the property is yours (if you are the successful bidder), and there are no subsequent options for the previous owners.