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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28043
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I was recently a high bidder at a real estate auction. I have

Customer Question

I was recently a high bidder at a real estate auction. I have since decided I cannot afford the property. I have not yet paid the auction down payment. Is there any options to back out and not pay the down payment?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 2 years ago.
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.
Good morning. I certainly understand the situation and your concern. The terms and condition of the auction house are going to control and absent language which would allow you to back out, you would be obligated to pay the down payment, which would likely be forfeited and lost, if you fail to proceed and buy the home. The obligation is on the buyer, to make sure they want and are able to proceed on the sale, prior to bidding and if you not can not afford it or do not want it, could be subject to litigation, if you fail to pay. The terms and conditions may state within, what you would lose or forfeit, be it the down payment or have to pay a fee for them to auction the home off again, so you do want to check with them and see their damage clause. If the auction company did something wrong, then you could back out since the home was not what was represented but if they are in compliance, you can not just make the bid and walk away, without concern about them coming after you.
Please let me know if you have any follow up questions or need any clarification on something which I stated above. Also, remember to rate my service before exiting the site, so I can receive credit for my help. I hope you found it to be Excellent! Only rate my answer when you are 100% satisfied. If you feel the need to click either of the two lower ratings to the left, please stop and reply to me. I want to make sure your experience with the site was as pleasurable as possible and that you are satisfied with the help I provided.
Expert:  RealEstateAnswer replied 2 years ago.
I just wanted to follow up and see if you had any other questions or needed me to clarify something. I am here to help, so please let me know. Thanks!