REVERSE AUCTION EXPLANATION (Items #111 - 220)
Properties Designated as Reverse Auction
All of the properties being offered at the auction are for sale with seller financing. You may pay cash for any property, or you may finance it with us. We do not check your credit, and you do not have to qualify for financing. EVERYONE QUALIFIES FOR FINANCING, REGARDLESS OF YOUR CREDIT.
Properties are being auctioned using two different formats. Items #111 - 220 are being sold in a reverse auction format. You are not actually bidding on these properties. The down payment of $500 is fixed for all properties. It is called a reverse auction because the price of the property may fall throughout the day until the property is purchased. In addition to the $500 down payment, you are assuming a loan on these properties.
Parcels designated as REVERSE AUCTION (blue properties) are FIRST COME, FIRST SERVED! These properties may be purchased with financing as stated within the individual parcel description by paying the down payment that is advertised for that property. You will be required to pay the down payment plus a $500 document/recording fee at the auction. Then, you will pay monthly payments on the loan, based on the loan and financing information of that specific property.
The built in loan amount of the REVERSE AUCTION properties will fall throughout the day of the auction. At the beginning of the auction, the prices of these properties will be at their highest point of the day. Throughout the day, the prices of these properties may be reduced, randomly. As a prospective purchaser, you may choose to wait for the price of a property to fall. The price of a property may only fall once, and it may fall several times. By waiting to buy, you have the advantage because the price may fall before you choose to buy, giving you the opportunity to purchase the property for a lower price. This is also a disadvantage for you, as the purchaser, because another purchaser may decide the current price is acceptable to them, and they may purchase the property before you, and in this case, you would lose the opportunity to purchase the property at any price, because the other purchaser chose to purchase before you.
To purchase a REVERSE AUCTION property, simply notify a member of our team. The team member will then mark the property as SOLD, and assist you in completing your paperwork.
When you are the purchaser of a BLUE REVERSE AUCTION property, you have two ways to pay:
#1 You may pay in full. For example, let's say you a property with a built in price of $9,200. The math works like this:
| Purchase Amount | + $9,200 |
| Closing/Recording Fee | + $500 |
| Total You Pay at Auction | = $9,700 |
In this example, you paid in full, so you would not pay any monthly payments.
#2 You may finance the property. All of the properties in the blue section may be financed by paying the $500 down payment. If you financed a property with a built in price of $9,200 with this example you would pay the following:
| Down Payment | + $500 |
| Closing/Recording Fee | + $500 |
| Total You Pay at Auction | = $1000 |
The balance of the purchase price (the remaining built-in loan amount of $8,700) would be financed. Remember, we don't check your credit, and anyone may finance a property. In this example, the $8,700 would be financed for 5 years (60 months), at 13.9% interest. You would pay 60 payments of $201.98.
