Upset Bidding the Foreclosure War

The North Carolina Real Estate Nightmare

What is an upset bid you may ask?

After a sale is reported to the clerk of court, an upset bid may be made by delivering to the clerk a deposit in an amount greater than or equal to five percent (5%) of the amount of the upset bid but in no event less than seven hundred fifty dollars ($750.00). In other words if you purchased 123 Main Street in Supply, North Carolina from a foreclosure or a clerk of court mandated estate sale the property isn't legally yours until 10 days after your signed documented closing date. Because in that 10 day period if another buyer comes along and offers a higher bid than the bid that originally won you the rights to be under contract at 123 Main Street Supply, NC then the property legally becomes the highest bidders property.

The catch is that the higher bid may be no less that 5 percent higher than the current purchase price or no less than $750.00. This keeps out anyone trying to purchase the property for only $5.00 more than you did. That isn't the only tricky thing about an upset bid! The upset bid may not be the winner of 123 Main Street Supply, NC. Each time an upset bid is accepted this begins a new 10 day waitinperiod ( formally referred to as the 10-day statutory redemption period). During this time it leaves the door open for a new upset bid to walk in and take the free and clear title right out of your hands.

Is this the only way I am able to lose the property?

No! If sweating it out for 10 days waiting for higher bidders than yourself isn't hard enough. Not only can an upset bid take away the rights to your newly owned property the past owners filling for bankruptcy can as well. The 10 day period still applies in this situation and if the foreclosed owner does not file for bankruptcy within the 10 day redemption period and no one else offers an upset bid then the property is legally yours!

Everyone loves the IDEA of a foreclosure or clerk mandated estate sale, this usually means owing a property with equity in it from day one! However once you really dig into the meat and bones of the situation at hand many are surprised to learn all things good will come with a price. The wait is worth it if your move isn't time sensitive and your anxiety is at a minimum. Foreclosures and Estate Sales are not for the weak at heart.

Pro:

• Better pricing on desirable properties

• Having equity going into home ownership

Con:

• Even at the completion of the home sale the home is not technically yours

• Can become a very lengthy process

• 10 day upset bid period allowed after closing

• Previous owners may file for bankruptcy and reclaim their property within 10 days after closing

Are Foreclosures and Estate Sales still for you?

Most buyers jump at the opportunity to snag a foreclosed home. After reading this and learning just a few of the many stipulations to a foreclosure sale you may have a change of heart. Either way I am here to provide the best and most professional knowledge in all buying and selling situations. Contact me to learn more about your options here at the coast!