Buying a foreclosure at public auction
Looking at purchasing a home that is being offered at public auction due to foreclosure. I would owe $5k deposit 24hrs after auction end, then balance +5% buyers premium in 30 days. The terms I am not completely understanding:
Because the property is subject to a court proceeding, the auction might be cancelled or postponed at any time or the court might vacate the sale after the auction takes place or decide to not confirm the sale. If you are the highest bidder, your purchase of the property might be delayed indefinitely or you might not be able to complete your purchase of the property. You will bear all risk of loss in these circumstances and will not seek to hold anyone liable for any costs, expenses, or losses you may incur.
Does the above mean I’m on the hook for the full purchase price no matter what? I understand loss of deposit, but if I can never take ownership I still owe my bid?
But wait there’s more:
If you are the highest bidder, you must pay the following amounts by the payment deadline: (1) the balance of the contract price, (2) county transfer taxes, (3) county deed recording fees, and (4) any costs, allowances, and taxes that the contract price is insufficient to cover.
The payment deadline is thirty (30) days after the court’s confirmation of the sale.
You must make your payment to the title company identified on the property details page and in the email sent to the highest bidder. Your payment must be made by wire transfer. You will receive wire transfer instructions. No other method of payment is permitted.
Does that mean if there are taxes due on the property I’m on the hook for that too? The court proceeding makes it seem like Bank of America is foreclosing, not a county tax issue.
Tl;dr: am I screwed out of $35k if I buy a house at public auction due to foreclosure?