Financing

This is an essential part of the auction process; you must have your financing arranged before you bid on any properties. It's this up-front money that allows you to get those fabulous buys. In some cases with government properties, only the earnest money is required prior to purchase. But you'll still need the remainder of the down payment readily available, and you'll have 30 to 60 days to come up with the balance of the purchase price.

At an auction, the term liquid funds means cash, money orders, or a certified or cashier's check for the required amount. Have a supply of certified checks or money orders made out to yourself so you can endorse them over to an escrow agent if and when you complete a successful bid. If you don't use them, you can deposit them back into your own bank account. You'll need separate money orders or checks for each property. For example, if the earnest money requirement is $500, then each money order or check must be made in that amount; a money order for $1,000 would allow you to bid on only one property.

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