Quick REO Capital - Home Auctions

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FAQs

1. What is an REO?

2. Why not just buy the property at the foreclosure sale?

3. How is an REO sale different?

4. Why buy at a Quick REO Auction Event?

5. What types of properties are auctioned off?

6. Who’s selling these properties?

7. What about financing?

8. Can I use my own lender?

9. Do I need to have cash with me at the auction?

10. Can I inspect the property I am interested in buying prior to the auction?

11. Do I need to register in order to bid at the auction?

12. Can I register onsite the day of the auction?

13. What if I have never bid at an auction?

14. Is the auction an all-day event?

15. Can I purchase multiple properties at the auction?

16. Are there any additional auction fees? What is a Buyer’s Premium?

17. When will the transaction close, and when will I receive the title for the property I purchase at auction?

18. What if I have additional questions?

1. What is an REO?

An REO or “Real Estate Owned” property is one that is owned by a lender after an unsuccessful foreclosure auction. Since what is owed to the lender is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale, and therefore, many properties end up repossessed by the lender to sell separately. Since most lenders are not in the business of owning homes, they will make every effort to sell the property through local realtor services.

2. Why not just buy the property at the foreclosure sale?

Foreclosure sales begin with a minimum bid to cover the outstanding loan amount, accrued interest owed, and fees associated with the foreclosure only. At foreclosure sales, it is highly likely that property taxes may be delinquent and other liens may be outstanding. The purchaser at a foreclosure sale must pay all other outstanding debts in order to obtain the title to the property. In addition, the buyer of a foreclosure property needs to have all “cash in hand” for the full amount of the bid.

3. How is an REO sale different?

An REO sale tends to be much more straightforward for the buyer than a foreclosure sale. Unlike the foreclosure sale, a purchaser of an REO property receives a title insurance policy because lenders will pay off taxes and other liens. Also, purchasers of REO properties have the option to obtain financing to complete their purchase.

4. Why buy at a Quick REO Auction Event?

Quick REO Home Auctions works with respected lenders and property owners all over the country to provide REO homes for sale to you. Buying at Quick REO Auctions is quick and easy. Bidding is fun and easy - there are no negotiations – the final bid is just that – final. Purchase times are quick – 30 days or less to close escrow. Property titles are guaranteed to be clear. Our friendly and knowledgeable staff is available to help you with any questions you may have about our Auction Events “Contact Us” .

5. What types of properties are auctioned off?

Single family homes, multi-family residential units, condos, townhomes, and new builder inventory may be offered at our auctions. The locations and specific properties can be viewed on our website under “View Newest Auctions”.

6. Who’s selling these properties?

These properties are all owned by legitimate sellers who are anxious – and motivated – to sell their properties quickly, even at a discount. Sellers may be banks or other lenders, private investors, or home builders. Not only are these properties desirable, they are sold with a title that is guaranteed to be free and clear - you will receive a title policy if you are the winning bidder on any home.

7. What about financing?

If you need financing in order to purchase a home, Quick REO is pleased to recommend our finance partners. They offer competitive financing terms and will help you find the financing option that’s right for you. To simplify the process further, you can “pre-qualify” online by checking the pre-qualification box on the Bidder Registration Form. Our partners offer down payments as low as 5%, and there are no pre-payment penalties on any of their loans. In addition, if you choose to be pre-qualified by a Quick REO partner lender, you will receive a $500 discount on your loan fee!

8. Can I use my own lender?

You may use your own lender; there is no obligation to use Quick REO finance partners. If you choose to use your own lender, please carefully review the Home Auction Terms and Conditions for more information about time-frames required for auction sales. We encourage you to use the Quick REO lending partners as they have committed to support the time-frames for successful auction sales. Our partners are all large, experienced lending companies who specialize in helping not just the first-time homebuyer but the more experienced investor. And pre-qualifying with a Quick REO partner lender gives you an additional discount on your loan fee.

9. Do I need to have cash with me at the auction?

Cash is NOT accepted. You will need to bring a $5000 cashier’s check made payable to yourself in order to bid at the auction. In addition, you should be prepared to pay by personal or business check the additional amount needed to meet the total deposit necessary to complete the transaction. The total deposit required is (a) five percent (5%) of the total purchase price on any first property purchase, (b) ten percent (10%) on the 2nd property purchased and (c) fifteen percent (15%) of the total purchase price on any property or properties beyond the 2nd property purchased. Additional details are described in the Home Auction Terms and Conditions. You should also bring your valid photo ID (e.g. driver’s license).

10. Can I inspect the property I am interested in buying prior to the auction?

Absolutely YES! You are purchasing a property “AS IS”, and therefore you should be as informed as possible about your purchase decision. This includes visiting and inspecting not only the physical property, but any disclosure documents and available property information. You may also pay to have a home inspection done by a professional inspector if you desire. By registering for and bidding at the auction you are certifying that you have done your due diligence and you represent that you have viewed the property and accepted all disclosures and information made available to you.

11. Do I need to register in order to bid at the auction?

Yes. Simply click the “Register Now” button and complete the online form. Registering at least 48 hours in advance of the auction event will ensure that you receive all the necessary information and updates you need to participate. Even though you have registered, you are not obligated to purchase a property at the auction. Registration is free. You must register separately for each separate auction event sponsored by Quick REO.

12. Can I register onsite the day of the auction?

Yes, buyers may register at the auction event. However, Real Estate Professionals must pre-register at least 2 days prior to the auction event to be eligible for Buyer’s Agent commission. We encourage pre-registering online at least 48 hours in advance of the auction event to ensure that you receive all the necessary information and updates you need to participate.

13. What if I have never bid at an auction?

Bidding is simple…no experience necessary! Prior to the start of the auction, we will conduct an Auction Bidding Seminar to demonstrate how the process works and give everyone a feel for the pace of the proceedings…we encourage you to attend this free workshop. “Assistant Auctioneers” will also be available throughout the auction to assist you in the process. Periodically, we also conduct How to Buy a Home at Auction seminars. These seminars are free to attend; however they are open only to pre-registered bidders.

14. Is the auction an all-day event?

Quick REO hosts several types of auctions. Our Mega Auction events can run anywhere from 2 to 6 hours. We auction 20 to 25 properties per hour so the actual length of the auction will vary based upon how many homes we are auctioning at the Mega Auction event. Our Showcase Auctions are held at some of the actual homes we are auctioning. We auction 3 to 5 homes in 30 minutes or less at each Showcase location. Please check the Auction and Property details pages carefully for information about auction time and locations for the homes you will be bidding on.

15. Can I purchase multiple properties at the auction?

Yes. The required deposit on multiple properties is outlined in FAQ number 9, as well as in the Home Auction Terms and Conditions.

16. Are there any additional auction fees? What is a Buyer’s Premium?

Yes. There is a 5% buyer’s premium added to the winning bid amount in order to determine the final price of the property. The buyer’s premium is a standard practice used at REO auctions and is used to help Quick REO pay marketing costs.

17. When will the transaction close, and when will I receive the title for the property I purchase at auction?

You will receive the title from the seller designated title company, vested as you designate, during the closing proceeding. All closings will occur within 30 days or less after an auction. At that point, you legally own the home and can move in, or start work on the property. More details are provided in the Home Auction Terms and Conditions.

18. What if I have additional questions?

Please feel free to contact us for any additional questions you may have by going to the “Contact Us” page.