The Bidding Process
The Trustee Sale bidding process...
1. Positioning the Bidders
There are typically three trustee auctions taking place simultaneously at the courthouse. There are an additional 4 auctions taking place at satellite trustee offices throughout Central Phoenix.
2. We sign in with all auctioneers.
Each auction company has different requirements and procedures. It is critical to be familiar with both the different auction procedures. Familiarity with the individual auctioneers and their methods also gives bidders an advantage.
3. Verify the property is still "on the list".
We must confirm that the auctioneer verifies that the properties we wish to bid on are cleared by the trustee and still on their list to be auctioned that day.
4. Verify funds.
The auctioneer calls for all bidders to show certified cashiers checks in the amount of $10,000 in order to verify that they have the required deposit. A bidder cannot participate without showing their check.
5. The Bidder waits and listens for property information.
This is the most time consuming and tedious part of the day. In many cases we can wait up to 4 hours for the subject property to be called. The auctioneer describes the property by either address, APN or TS number.
6. Confirm opening bid amount
Prior to every bid, we must confirm that the opening amount has not increased. It is not uncommon that there is a jump bid (increase of price) placed by the trustee. A drop bid (decrease on price) may occasionally occur as well.
7. Call Client
If the client has requested to "participate" with us during the bid, the bidder will place a call to the client a few minutes before the opening bid is called.
8. The auctioneer opens the bid.
Any participating bidder may start the process by calling a dollar amount. It is very common for the first bid to be "plus a dollar." After the initial bid, the smallest increment accepted is $100. We bid in $100 increments because our goal is to obtain the property at the lowest possible price. Sometimes it makes sense to hang back while competing bids are placed in much higher increments, then jump in when it becomes clear that the bidding is slowing down. The number of competing bidders will significantly affect the outcome.
9. Placing bids
We continue to place $100 bids until we reach the client's maximum price or the client verbally instructs us to stop bidding.
10. Final And Last Call
We notify our client immediately of the outcome. Upon successful acquisition, we give the Auctioneer the necessary vesting information which our client has provided us. We verify that our clients vesting information is correct when we endorse the deposit check.
11. Completing the vesting process
When we return to the office, we email a copy of the receipt and the necessary information to the client which includes:
> The complete Address and legal description of subject property
> The name, location and contact information of the corresponding Trustees Office
> The total amount due to the trustee by 5 pm the next day
12. THE FOLLOWING DAY- Payment of balance
The client has the option of delivering the final funds to the Trustees office the day after the winning bid or allowing us to make the payment on their behalf. If the client decides to have us run the payment, we must have received the cleared funds from the client, either by wire or cashier's check by 5 pm the day of the winning bid. If we do not receive the funds by 5 pm the day of the bid, it is the client's sole responsibility to assure that the Trustee receives the balance due by 5 pm on the day after the winning bid.
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