A foreclosure sale is the final stage of the foreclosure process,images1 at which the property in foreclosure is sold at public auction to the highest bidder. The sale is conducted by a court-appointed referee. The referee begins the sale by reading aloud the Terms of Sale; the Terms of Sale is the document that acts as the contract of sale between the referee and the high bidder and sets forth the rights, responsibilities and obligations of both the referee and the high bidder. Once the referee has read the Terms of Sale, the referee begins to accept bids for the property. The foreclosing mortgage holder (the “Mortgagee”) usually has an “upset price” which is the minimum amount it will accept in satisfaction of the mortgage debt. If the highest amount bid is less than the upset price, the Mortgagee will usually be the high bidder and take title to the property. If, however, the highest amount bid exceeds the upset price, the property will generally be sold to the highest bidder.

Generally, a potential bidder is unable to inspect the property prior to bidding. The Mortgagee does not own the property and they have lost legal authority to allow inspections. The successful bidder cannot legally enter the property until the title has closed and the referee has delivered the deed to the property.

The highest bidder must immediately pay to the referee an amount equal to at least ten percent (10%) of your bid (the “Bid Deposit”). The Bid Deposit must be in the form of cash or certified funds. In addition, the highest bidder will be required to sign the Terms of Sale.

In most cases, the Terms of Sale require that the balance of the cdpelogo_color_name_300dpi35purchase price be paid and the sale completed within thirty days from the date of sale. It is within the referee’s discretion whether to grant an extension of time to allow the high bidder to complete the sale. If the referee grants an extension of time, the high bidder will be required to pay interest on the bid from the original scheduled closing date through the actual closing date. 

To find out all the benefits and options for preventing foreclosure, go to Foreclosure  Prevention Team Ready to Help in Hudson County contact Eddie Perez, Broker-REALTOR®, CDPE or Anoir Redouane, REALTOR®, CDPE.  Their market includes Hoboken, Jersey City, Weehawken and Union City.  They can be reached at 201-344-2886 or at eddie@InvestHoboken.com Prevent Foreclosure.


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