General Information
1. A foreclosure sale (public auction) is conducted without any reservations for property inspections or mortgage financing (unlike a typical real estate purchase). The bidder must be prepared to close the transaction within thirty (30) days of the Court’s approval of the sale (typically court approval is obtained within two weeks of the auction date). If a successful bidder is unable or unwilling to close as set forth above the bidder’s deposit may and likely will be ordered forfeited by the court to cover the costs of the sale (advertising etc.), committees fees and accrued interest on the obligation being foreclosed.
2. The property is being sold “AS IS”. There will be no adjustments in the bid price for any property defects discovered post auction. Your bid must reflect your valuation of the property taking into consideration all unknowns. Further, your bid price must take into consideration that if there are taxes due and owing, water or sewer charges, tax liens on the property or other encumbrances on title prior in right to the interest being foreclosed, you will have to satisfy those obligations from additional funds above and beyond the amount of your bid.
3. If there are tenants in possession of the property the responsibility to seek an ejectment order in the foreclosure action rests with the successful bidder. If an ejectment order is not obtained from the court ordering the foreclosure sale, the successful bidder will be responsible for evicting the tenants through an eviction action brought in the housing court having jurisdiction.
4. There is no minimum bid price for the auction. Typically, but not always, the plaintiff (foreclosing party) will bid an amount sufficient to cover the amount of the outstanding debt plus accrued interest, their attorney’s fees, and the committee fees and costs associated with the sale. Often the foreclosing party is given permission by the court to submit its bid to the committee on the day before the scheduled auction. The court must approve the auction following its completion. A court may not approve a sale where public attendance is adversely affected by outside influences. For example, extreme weather conditions (i.e. A blizzard which results in the closure of state roads and the only bid is from the next door neighbor who trudges through the snow to register and bid).
5. Interested bidders are expected to conduct their own title examination and to research tax, water and sewer charges in advance of the auction. The committee may provide information as to what he has been told, but such information is not warranted, and reliance by interested bidders on such information is expressly disclaimed.6. Property is conveyed to the successful bidder by way of a Committee Deed. Said Committee Deed contains representations that the committee has full power and authority as committee to grant and convey the subject property free and clear of the mortgage/lien being foreclosed and of all claims subsequent in right thereto.
7. The Committee makes no representations as to ownership rights and condition of items of personal property which may remain on the subject property at the time of closing. Further, it should be noted that items of personal property (appliances, etc.) are not included in the sale of the property. The successful bidder has the responsibility to seek an order from the court regarding the removal and/or disposal of personal property much the same as if the premises were occupied by tenants in possession.
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