Real estate auctions are very common in Illinois. It provides an enticing option for buyers to purchase a property or home due to its fast transaction process and quick efficiency. Real estate auctions are also favorable for sellers who are looking for swift procurement of money to pay certain loan payments or perhaps reinvest in other property or potential ventures.
The most common reason behind real estate auctions is foreclosure. A foreclosure is an event where a home owner is unable to pay their mortgage payment and their property is seized by the bank. Statistics on RealtyTrac reveal that there are around 581,132 U.S. properties in some stage of foreclosure. A good number of these properties are auctioned by the bank or lender to recoup their losses.
Real Estate Auction Process in Illinois
When banks or financial institutions need to recover unpaid debts, they tend to put real estate property to auction for bidding between individuals or public entities. In a typical real estate auction, there is one seller and many bidders willing to purchase a property. The higher the bidding competitiveness is, the higher the price is driven by an auction.
Real estate auction rules are similar to any other auction: highest bidder wins the sale. Once a winner is decided, the process binds both seller and buyer to a contractual obligation. However, there are certain rules that apply to a winning bidder. For instance, there can be a reserve price that must be met by a buyer for a biding to remain valid, or else that auction may be deemed as unsuccessful.
How Can A Real Estate Lawyer Help You In Auction Process?
There are certain benefits of real estate auction for both seller and buyer, however, it is imperative for both of them to be familiar with rules and guidelines pertaining to auction process and completion of transaction. More importantly, they must be aware of litigation issues that may arise due to final sale. In some instances, an auction house does not provide a guarantee of whether deed to a property is clear of any issues. Others may not allow buyer to check and inspect the property before purchase. Once the sale of the auction reaches to completion, a buyer, unfortunately, has little to no recourse available, especially for an individual who is unfamiliar with technicalities pertaining to auction and real estate regulations.
Therefore, if you are planning to buy or sell a property in real estate auction, it can be highly beneficial for you to seek advice from an experienced and skillful real estate lawyer to ensure that your transaction goes swiftly without any legal repercussions. Your attorney will also be able to protect your rights and pursue any kind of claim in case you believe that you have some reservations about your transaction.
For further information on real estate auctions or to schedule a free consultation, it is highly suggested that you contact Casement Law Group, P.C. today at (847) 888-9300 to speak with a real estate lawyer on this issue.