That Upset Bid Process is Such a Hassle . . . How Can I Get Around It?
I had an interesting question about my last blog regarding the upset bid process, which requires a 10-day period following each new bid during which the bid can be raised. A reader asked if there was a way to get around it. In other words, can you ever be guaranteed to be the successful purchaser on the day of the foreclosure sale? In North Carolina, unlike many other jurisdictions, the answer is No. At least, not legally.
Practically speaking, if you wanted to bid a million dollars on a home worth thirty, chances are there will be no upset bids. Everyone would be delighted, except you when it comes time to lay out the cash. The upset bid process is designed to bring the highest price, and the public bidding aims to push that price closest to the market value of the property. Tinkering with that process can be dangerous. It is illegal to “bid rig” by paying someone to stop bidding or for agreeing to “not” upset the bid in exchange for some benefit. Watch out for investors who offer to buy your bid position or pay you a premium to assign your bid. You could find yourself on the wrong end of a lawsuit or a set of metal bars.
How to actually make a bid and complete your purchase? Next time, on our foreclosure blog.
Published by Lanée Borsman on November 15, 2016