Auction Sales Escrow Services
Auction sales are a non-traditional way to buy real estate. In the past, this avenue was limited to real estate professionals and investors, but today many non-professional buyers benefit by purchasing residential property at auctions throughout California.
Property goes up for public sale for one of two reasons: if the property is at a foreclosure auction, the original homeowner defaulted on their home loan and the lender took possession. Property can also be made available through a tax lien auction, which means the original lender owned the federal government a significant amount in taxes and the property was seized.
After winning a property at auction, the buyer typically provides a deposit of 10% of the listing price along with auction fees. The auction winner must then go through escrow and closing, as with any other real estate purchase. Buyers must get pre-approved for financing before turning to an action, as failure to close escrow will result in the buyer being held liable for expenses incurred in the resale and any deficiency if the property is resold for a lesser amount.
Bayside Escrow manages every detail of auction sale transactions by:
- Providing full management and action as a neutral third-party to close the real estate transaction within the guidelines set forth in the contract while serving as the depository of funds and closing costs
- Responding to all communications in a timely manner
- Keeping all involved parties informed of the escrow progress every step of the way
- Following mutual instructions expeditiously
- Preparing escrow instructions and ensuring all documents are executed properly
- Issuing receipts for deposits of funds in the trust account
- Handling of loan documents and instructions from the new lender
- Coordinating the services of a notary public
- Ensuring proper proration and adjustment of taxes, HOA dues, etc.
- Preparing and sending out the estimated and final settlement statements and HUD-1
- Instructing the Title Company to record documents, such as the Grant Deed and Deed of Trust
- Disbursing funds to proper parties and closing escrow, as authorized
- Maintaining security and accountability of funds due to principals by providing several disbursement options
- Closing escrow in accordance with mutually agreed written terms
- Ordering all applicable reports and disclosures, such as the preliminary title report and HOA documents
- Complying with city, state, and federal guidelines as applicable to the subject property
- Obtaining approval of documents and reports from all parties
- Securing payoff demands or beneficiary statements from existing lenders
- Acquiring necessary documentation to clear outstanding liens attached to the property
- Requesting demands conveyances of mortgages or the deed of trust to be paid off in escrow
Our escrow officers have years of experience helping investors and consumers through this complex process with unparalleled, professional and efficient auction sale escrow services. Closing escrow on auction sales in California requires an experienced escrow team capable of handling any issues that may arise to delay closing, and there are specific requirements that must be met. Turn to Bayside Escrow for a simplified, streamlined escrow process with excellent service that ensures all parties involved are confident in the escrow process.