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Auction Awareness:
Preferred Auction Lender
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Understanding the Basics of Real Estate Auctions
(Auction Awareness = Understanding The Process & The Players)
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Working closely together, the Mortgage Provider and the Settlement Agency provide the “monies and legal process” for a successful outcome of the Auction transaction.
The Mortgage Provider (Lender) provides the Mortgage necessary for the Buyer-Bidder.
PRE-AUCTION
The Preferred Auction Lender approves a Loan for the Buyer (Bidder) prior to the Auction Event. The Approved Buyer (Bidder) now knows his/her exact maximum bidding limit for the Auction..
THE DAY OF AUCTION EVENT
A representative from the Preferred Auction Lender normally attends the Auction Event to answer Loan Approval questions and offer “on-site loan pre-qualification” for late registrants.
POST-AUCTION
The Auction Lender for the Winning Buyer (Bidder) puts the “polishing touches” on the loan after the Close of the Auction Event to insure a timely settlement. In addition to the Property Inspection Appraisal, the Auction Lender reviews any and all additional documents required to finalize the loan underwriting process. The Auction Lender then “packages the loan” and submits it to the Preferred Settlement Agency for Buyer signing at settlement..
As earlier stated, the Auction Sales Agreement designates a specified date and time for the settlement. On the designated date, the Preferred Settlement (Escrow) Agency conducts the Settlement by coordinating document review and signing as required of the Seller and the Buyer. After Settlement, the Settlement Agency pays off any pending liens against the property, submits the signed loan documents to the Auction Lender, records all necessary settlement documents with appropriate government agencies and secures the final issuance of Title Insurance for the Buyer (now Owner).
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