Have you ever bid at the courthouse on a foreclosed property? Was yours the original bid or was it an upset bid?
What is an “upset bid”?
At a foreclosure auction at the courthouse, once a highest bidder is determined, there is a 10 day period during which North Carolina allows someone willing to pay more to place a higher bid. They must raise the accepted bid by a minimum of 5% and include a cash deposit of 5% of their bid price.
If you are outbid or your bid is “upset”, the process begins again and another higher bidder has 10 days to make a better offer. If, after the 10 day upset period expires there are no higher bids, the person who placed the last highest bid wins the right to purchase for their bid price if it has been accepted by the seller.
North Carolina Statue requires that an upset bid be received within 10 days after the date the notice of auction sale is published. To qualify as an upset bid, the bid must raise the published offer by an amount of at least 10% of the first thousand dollars of the offer and 5% of the remainder of the published offer. When a bid has been successfully raised (upset), the highest new bid becomes the current offer and the procedure is repeated.
Did you make a bid at the courthouse and lose? How do you get your deposit refund?
I went through a number of phones calls to a number of Guilford County offices and ended at Special Proceedings. They do not send refunds automatically. Many people keep bidding and don’t want their refund until the very end.
Whenever you decide to get your refund, if you did not have the highest bid, take your receipt to the Special Proceedings office and, usually, your check will be mailed to you the next day.
Easy. But they wait for you to bring them the receipt and ask them mail it.
How do you know if the bid will be accepted buy the seller?
Sep 19th, 2010 / 1:24 am
When you bid at the courthouse, you don’t know for sure until you hear back from the bank! This usually takes only a matter of days.
If your bid is accepted, there is then an upset bid period where other bidders are given an opportunity to bid higher than you did so you need to pay attention.
Sep 19th, 2010 / 8:57 am
At an auction of property, how long would it take for the winning bidder to obtain
title to the property?
Dec 12th, 2011 / 9:33 pm
Al: Depends upon the type of auction. At the courthouse, if you’re the high bidder, there is a 10 day “upset” bid period where another person can come along and outbid you. After that, you typically have 30 days to close.
At a private auction or anything other than the courthouse, you are usually given up to 30 days to close. If you have cash, you can close sooner.
Dec 13th, 2011 / 9:14 am