Released by the Office of the Washington County Clerk of Courts …
Foreclosure is a legal process in which a lender or individual attempts to recover the balance of a mortgage from a borrower who has stopped making payments, as contractually agreed upon, by forcing the sale of the asset used as the collateral for the mortgage or pay out the existing debt.
In these trying economic times, foreclosure seems to loom in the future for so many. For homeowners, this can be one of the most difficult times in their lives and their financial future. However, for those wanting to invest in real estate, this can be a lucrative opportunity to purchase property at a reduced cost.
As a potential or successful bidder, there are some procedures that must be followed in order to place a bid and finalize the entire process with the clerk of court’s office. By the day of the sale, potential bidders should have already made financial arrangements so that they can meet the requirements of the sale. The clerk of court’s office will accept cash, money orders, cashier’s checks, certified checks, or governmental agency checks. Bids are accepted in no less than $10.00 increments and are called and finalized in the following format: “Going once, twice, three times, sold.”
The successful bidder shall immediately post, with the clerk of court, a deposit equal to 5% of the final bid. The deposit will be applied to the sale price at the time of payment. If the final payment is not received by 3:00 p.m. on that day, the clerk of court will re-advertise the sale and pay all costs of the sale from the deposit. Any remaining funds shall be applied towards the judgment.
Please note that the successful bidder is required to pay the documentary stamps on the Certificate of Title which is calculated at $0.70 per $1.00. In addition, a registry court fee is required which is calculated on the bid amount as follows: 3% on the first $500.00 and 1.5% on the balance. The bidding will not be suspended to allow a bidder time to obtain the required deposit. If the high bidder is unable to pay the deposit immediately, bidding will resume at the next highest bid and continue until all bids are taken. The auction will end when the successful bidder makes the deposit and the clerk announces that the property is sold. Failure to make the deposit and/or final payment, as required, may result in being barred from bidding.
Please also be advised that a purchaser, at a judicial sale, takes the property subject to any defects, liens, encumbrances, and all matters of which the purchaser has notice or of which the purchaser could have obtained knowledge.
If you are interested in learning more about the foreclosure auction process, please contact the Washington County Clerk of Court at (850) 638-6285.