How does an auction work?
The auction process is fairly straight forward.  You are required to show up at the specified location (generally the County Courthouse steps in a foreclosure sale) with the deposit required for the given property.  You make your presence known and your intent to be qualified as a bidder.  The Trustee will check your deposit prior to the sale and certify you as a prospective bidder.  The deposit amount can be found on our website or in the legal advertisement in the newspaper.  For a list of County Newspapers of Record, click here.
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Where is the sale?
Generally, foreclosure auctions are held on the courthouse steps. If the sale is held at the premises or an alternate location, it will be noted on this website and in the legal advertisement. A list of county courthouses can be found here.
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Can I view the property prior to the sale?
In a foreclosure sale, there is no access to the property prior to the auction.  You may view it externally, but until the hammer falls, the current owner of the property remains the owner.
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Should I buy a property at auction?
The auction method of selling real property is simply one method of transferring ownership of a property. A potential buyer should examine the method just as he or she should examine any other method of sale.
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What are the risks involved in buying property at auction?
The risks are basically no different from any other type of real estate sale. As a buyer, you need to do your "due-diligence" whether it's an auction sale, sale through a real estate agent, or a private sale by owner.
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If an owner is selling his property at auction, doesn't that mean he is in financial trouble?
The majority of real estate auctions are distress sales. However, private auction sales by the owner are becoming increasingly popular, and these sales are no indication of financial trouble.  It simply points out that the auction method is a great way to sell your property!
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Why is the auction method the best way to sell property?
In a well publicized auction, everyone who has an interest in the property, real or personal, is gathered together at one time.  The highest bid forthcoming then is the "Fair Market Value".
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Is it possible to buy a property with no money down?
It is within the realm of possibility, especially if an owner has a property that is not particularly desirable and is willing to do almost anything to move the house.  However, the reality is that most property sales require deposits, generally in the range of 10%-15% of the desired purchase price.
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What is a "Trustee's Sale" or "Substitute Trustee's Sale"?
The "Trustee" or "Substitute Trustee" is the authorized individual or individuals, acting as agents of the court, who oversee the sale process.  The Trustees are there to ensure the property is sold in a fair and equitable manner to the maximum benefit of all concerned parties.
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The foreclosure sale ad looks different than the Contract of Sale I signed for my present house.  Why?
There are several factors in a foreclosure sale that are different from a sale by a private party or a real estate agent. In a foreclosure situation, a Trustee or Substitute Trustee is charged with selling the property. Usually the property will be sold "AS IS" with no warranties. In addition, the buyer will be paying all closing costs.
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If the property does not meet my expectations after the sale, will my deposit be refunded?
Generally no. The contract states that the buyer is tendering a non-refundable deposit and if the buyer does not go to settlement the property will be re-sold at his risk and expense.
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How long after the sale will settlement take?
Ratification takes approximately 45-60 days. In this time frame the Circuit Court examines the whole sale procedure for a given property.  Once that process is complete and the court auditor approves the sale for ratification, then the trustee generally gives you 30 days to settle.
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Why doesn't the Trustee have a key to the property?
The debtor still has possession until the jurisdictional Circuit Court ratifies the sale and the property goes to settlement.
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What if the debtor is still living in the property?
Generally, by the time settlement occurs, the debtor has vacated the property.  However, in certain circumstances, the Sheriff's office may need to be contacted.
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Once I've purchased a property at auction, does the debtor have the right to bring a property current before my settlement?
In most cases, once the auctioneer's hammer falls, the property goes to the ratification process.  The 30 day ratification period allows the Court to examine any objections to a sale.  It is very rare that an objection overturns a sale, simply because the laws governing a foreclosure auction are closely adhered to by the Trustees.
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If for some reason the Circuit Court should rule that a sale is invalid, do I lose my deposit?
Under these circumstances, your deposit will be returned.
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How can I find out what is currently owed on the property?
The "Statement of Mortgage Debt" is filed with the foreclosure papers in the Circuit Court. These records are available to the public.  A few Trustees list the debt in the foreclosure advertisements.
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What happens with other liens and judgments against the property?
All liens junior to the lien being foreclosed on are wiped out under Maryland State law. Federal tax liens are first in line and if there is one it will be announced prior to the sale.
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The deposit amount in the advertisement states "cash or certified check".  Can I pay with a personal check or credit card?
No.  The Trustees are rigid in this requirement; they will not certify you as a bidder until they have checked your deposit to make sure it is valid.  You may make the check out to yourself and sign it over to the Trustee if you are the successful bidder.  If you are unsuccessful, it is easier to redeposit the check back into your account.
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Answers to these questions are not guaranteed to be the absolute final answer.  You would be wise to consult an attorney specializing in real estate and/or foreclosure law.

If you have a question that is not answered here, feel free to contact us.