Do I need to register to bid at the auction?


Yes, you must register.  There is no cost and you can easily register at our website. You must register separately for additional auction events.

How can I place a bid?


Prior to the auction, you can place a pre-emptive bid through our website.  If the bid is acceptable, then you and the seller will execute a purchase contract and you can avoid competing with other bidders for the property. Approximately 7 days prior to the auction, new pre-emptive bids will no longer be accepted.  All registered bidders with the required cashier's check(s) will be able to bid on auction day. Before the auction, our auctioneer and staff will assist you in getting comfortable placing a bid.

What is the "Bid Now" link?


The Bid Now link on an individual property page allows you to place an offer on a home prior to an auction.  This is a great way to purchase the home you like and avoid competing against other bidders on auction day.  Once you place an offer, the seller will review the offer and determine if it is acceptable.  If the bid is accepted, a package including the purchase contract will be sent overnight to you.  Sign the purchase contract and complete the questionnaire, include the required earnest money deposit and return the package within one day of your receipt.  Once the seller executes the purchase contract, the property will be placed into escrow and removed from the auction.

Are there any liens on the foreclosure properties?


No. The properties are sold free of mortgages and liens. Properties have insurable title and you will receive an owner’s policy of the title insurance in the amount of the sale price as part of your transaction. While the seller will pay the owner's title insurance policy, you will be responsible for paying for the lender's title insurance policy (if applicable).

Should I get pre-qualified before the auction?


Yes.  You should obtain pre-qualification from the lender of your choice prior to the auction. Some auction events feature a preferred lender. In such a case, the name of the preferred lender will be disclosed within the auction specific website. Remember that failure to close within the pre-determined time period may result in forfeiture of your deposit. Make sure that your lender can meet all deadlines prior to placing a bid.

How do I get inside the property prior to bidding at the auction?


You should view and inspect the property prior to bidding.  Most homes will be available for viewing during Open House inspection hours.  A complete list of Open Houses and times will be available on our website.  You can coordinate with the listing agent to obtain access to the home. There is no inspection period after becoming the winning bidder, so complete all inspections to your satisfaction prior to bidding. Besides engaging a licensed inspector, you may want to have your licensed contractor view and inspect the home in the event that you wish to remodel the home after closing.

When is the bidding order published?


The bidding order will be published on the website prior to the auction. We will also have a bidding order list available on auction day. The order is subject to change at any time and properties may be deleted from the auction at any time.

When will the transactions close?


Closing is scheduled to occur within 30 days of the auction.  In the event that you are unable to close within the allotted time frame, please refer to the purchase contract for terms and conditions of the sale.  You may be able to extend the closing for up to 30 days subject to the consent of Seller and payment to Seller at closing, of an extension fee of $100 for each day the closing has been extended.

How long will each auction last?


The length of the auction varies, however, you can generally expect somewhere between 20 and 30 properties to be sold per hour.

What does "sold subject to seller’s approval" mean?


When the bidding ends on a property, the auctioneer will announce that the property has been ‘sold’ to the high bidder, or that the property has been ‘sold subject to seller’s approval’.  If a property is sold subject to seller’s approval, you will be asked to sign an auction purchase agreement, and the agreement will be signed by the seller’s representative.

LPS Auctions will notify you via email, phone or fax no later than 10 business days after the auction that the seller has accepted your bid price.  If the seller does not accept your bid price, you will be informed of the amount the seller will accept.  You then can either agree to increase your bid to that amount, or to cancel your purchase.  If you cancel your purchase, you will receive a full refund of your earnest money deposit promptly.

What happens if I have the highest bid on auction day?


The high bidder will be escorted to the contract room where they will sign a purchase contract and all other relevant documents. You will also be asked to provide funds to bring the deposit to the greater of 10% of the sales price or $5,000. However, if you provide a lender pre-qualification letter or proof of funds, you will only have to increase the deposit to the greater of 5% of the sales price or $5,000.  At this point, the seller will review the offer and if everything is verified and completed as requested, will then sign the purchase agreement.  Until the seller signs the purchase contract, no agreement to sell exists. Properties may be re-bid if buyers do not comply with all terms of sale.

What is the high bid amount?


The high bid amount is the highest bid placed during the auction for a particular property.  It is not the same thing as the sales price.

What is the 5% Buyers Premium?


The Buyers Premium gets added to the high bid amount to determine the Total Purchase Price. For example, if a high bid amount is $100,000, the Buyers Premium is $5,000 ($100,000 x 5% = $5,000). Therefore the sale price is $105,000.

What is the Earnest Money Deposit?


The Earnest Money Deposit is the amount of money that the high bidder must deposit with the escrow agent on auction day. This amount is the greater of 10% of the sales price or $5,000 (the greater of 5% or $5,000 for Bid Now bidders or Buyer’s who present a pre-qualification letter from a lender of their choice at Auction).  It is made up of the cashier's check minimum amount required to bid plus an additional check to bring the total up to 10% (5% for Bid Now bidders or Buyer’s who present a pre-qualification letter from a lender of their choice at Auction) of the sale price.

How do I pay the Earnest Money Deposit?


Bring a cashier's check made out to you for the minimum amount required to bid.  Also bring your checkbook to write a check to increase the Earnest Money Deposit as required above.

What if I have a real estate agent or broker?


We welcome agents and brokers and offer a percentage of the high bid amount as compensation.  Your agent must follow all steps including registering you, accompanying you to all showings of the property, attendance at the auction and presence in the contract room upon successful bid.  Your agent can refer to the auction Terms and Conditions for details.

If I am the high bidder, can I assign my contract to someone else?


A Buyer may not directly or indirectly assign or transfer its rights under the contract without the prior written approval of seller.

Can I conduct inspections after the auction?


No. All inspections must be completed prior to the auction event. The properties will not be open for inspections after auction.

What do I need to bring to the auction to purchase a property?


1. A $2,500 cashier’s check payable to yourself or cash for the Auction Bid Deposit. Higher amounts are required for purchasing multiple properties. See General Information for detail.
2. A blank personal or business check to pay the balance of the Earnest Money. Earnest Money required is the greater of 10% of the total contract purchase price or $5,000 (the greater of 5% or $5,000 for Bid Now bidders or Buyer's who present a pre-qualification letter from a lender of their choice at Auction).
3. A valid, government issued picture ID.
4. Any co-buyer should be present with you with proper ID.
5. Any necessary corporate, partnership, limited liability company or trust documents if purchasing under a trust, LLC, corporation or other entity.
6. Original, valid Power-of-Attorney if not bidding for yourself.
7. Pre-approval letter from your lender or prequalification documents from the auction lender (or proof of funds for cash buyers) is strongly encouraged.

Auction terms and conditions and purchase contracts vary by property and auction event.  There are additional requirements for those bidding on multiple properties (investors).  See auction brochure and updates for details.

What can I expect on auction day


You can expect an active and exciting atmosphere. We will start promptly and move through the properties quickly. Please allow yourself adequate time for parking and registration.

How do I prepare for the auction?


  • Log on to www.lpsauctions.com to search for auction properties. Be sure to read all of the property disclosures on the property details page including the Auction terms and conditions and the purchase agreement.
  • Get pre-qualified for a home loan and find out how much you can afford. You can use the lender of your choice.
  • Attend one or more of the scheduled Open Houses and thoroughly inspect all homes you are interested in bidding on.
  • Register for the auction online.

What is the reserve price?


A reserve price is an unpublished minimum selling price. The starting bid is not the reserve price.   Should the winning bid be below the reserve price, the property may not be sold.

What information do I need to provide for an "all-cash purchase?"


You will need to provide proof of funds.  This could be provided in the form of a bank statement on investment account.

What is a “Back Up” bidder?


When the winning bidder of each property is determined, the “Back Up” bidder is the person who made the last bid before the winning bid.  If the winning bidder, for any reason, fails to close, we may contact the Back Up bidder and offer the property for purchase.