Auction questions

THOUSANDS of people have been affected by the global financial credit crunch which has sadly resulted in homeowners not being able to afford the repayments on their homes and ultimately losing them back to the credit providers.

With the current economic climate, even if one is careful with managing your finances, one can easily fall victim to not being able to manage a bond repayment that was probably well within your affordability when you initially purchased the property, but has now become a commitment that is difficult to manage due to rising interest rates and cost of living, petrol and other essential items - so please be considerate and sympathetic, it is a traumatic event in anyone’s life.

On the positive side, this has presented a huge opportunity for first time home owners and property investors to gain access to immense bargains. In almost all instances, properties, homes and vacant land can be purchased at prices well below market value which makes them a wise investment for anyone who can afford it. 1. What types of properties will be sold at the Sheriff Auction?

These are agricultural, commercial and residential properties acquired by lenders through the foreclosure, Sheriff ’s sale or deed in lieu of foreclosure process.

2. Who owns the properties that are being offered at the Sheriff Auction?

These properties are acquired by lenders through the foreclosure, Sheriff ’s sale or deed in lieu of foreclosure process and are now being liquidated. When a home loan client for example can no longer afford the home loan payments, the bank is forced to cancel the home loan agreement and institute legal action against the defaulter.

Once judgement is obtained through the courts, the property is attached by the Sheriff of the Court and sold on public auction as a Sale of Execution.

3. Should I go inspect the property prior to bidding at the Sheriff Auction?

It is not always possible to inspect the property unless there are guards placed at the property or the auction address is at the property itself ( Some Sheriff ’s will make arrangements for you to view the properties). Most likely you would have to drive past the property and make a judgement about the property on the view that you got from the drive- by and the information that we give you. Also conduct your own research to establish what the property is worth.

4. May attend to just watch?

Yes, however you will still be required to register. Every Sheriff reserves the right to require registration and/ or a registration deposit.

This will vary from Sheriff to Sheriff. It will be in your best interest to enquire from the respective Sheriff if he/ she does require a registration deposit and in what form he/ she would require it.

5. If I have a successful bid, can I assign my contract to someone else?

No. The purchase agreements are not assignable. All parties who wish to buy must be present on auction day so that they can register for the auction and execute the necessary documents if they have a successful bid.

6. Can I bid on other parties behalf ?

You may bid on other parties behalf if you have a Power Of Attorney from the other party. This is a Legal document that you will have to draw up and cannot be a verbal arrangement. You have to present this document to the Sheriff if you have a successful bid along with any other documents as would be required e. g certified copy of the Power of Attorney contract, ID of all parties involved etc.

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