Auction.com Community Stabilization Pledge: Helping Provide compassionate transition to new housing

Auction.com is committed to disrupting traditional disposition methods and supports the stabilization of neighborhoods. Auction.com is taking steps to provide occupants of foreclosed properties with the opportunity to have a compassionate transition to new housing. In furtherance of this commitment, Auction.com is asking its buyers to participate in Auction.com’s Community Stabilization Pledge. All buyers of bank-owned (REO) homes through Auction.com will be required to agree to (i) provide a minimum of 30-day notice prior to commencing any court action or other legal proceeding to evict the current occupant of the above-referenced property and (ii) offer within 30 days of purchase at least $2500 in transition and relocation assistance in exchange for the occupant to vacate the property within 30 days. Alternatively, Buyer can offer at least a 12-month lease at market rate whenever possible in lieu of any eviction or relocation proceedings.

If you buy an occupied REO property on Auction.com – and we encourage you to do so – we’ll be asking you to sign our Community Stabilization Pledge mandating that you will take steps to ensure occupants have the opportunity to transition to new housing. We hope you understand and support this effort to ensure that individuals and families will not be displaced in the near term and have ample time to make a transition.

Winning bidders of occupied, bank-owned properties will need to sign and return the pledge, along with other contracting documents. To view the pledge, click here.

FAQs

As part of a Company-wide effort to ensure that families are not displaced and are able to make a compassionate transition, buyers of bank-owned (REO) properties on the Auction.com platform are required to agree to:

  1. provide a minimum of 30-day notice prior to commencing any court action or other legal proceeding to evict the current occupant of the above-referenced property;

    2. AND

  2. offer within 30 days of purchase at least $2500 in transition and relocation assistance in exchange for the occupant to vacate the property within 30 days.

Alternatively, Buyer can offer at least a 12-month lease at market rate whenever possible in lieu of any eviction or relocation proceedings. Buyer’s commitment through the Community Stabilization Pledge is in addition to any other eviction restrictions that now exist or are hereafter set forth by local, state and federal law as well as any governmental authority. Any buyer must follow the local, state and federal law regarding evictions.

This Community Stabilization Pledge was put in place on October 1, 2021 (the “Pledge Commencement Date”) and applies to any REO auction sales occurring after such date with an applicable pledge.
Any buyer who participated in an auction prior to the Pledge Commencement Date may be bound by the Community Stabilization Pledge if the buyer has not closed the purchase transaction with the seller until after the Pledge Commencement Date. Any buyer is bound by the Community Stabilization Pledge and date agreed to on the pledge document at the time of entering into the contract for purchase. However, there may be other eviction restrictions promulgated by governmental authorities or mortgage lenders that still apply to the property.
There are specific legal limitations on how properties must be offered for sale at foreclosure. Because of such laws, Auction.com’s Community Stabilization Pledge does not apply to properties purchased through foreclosure. However, there may be other eviction restrictions promulgated by governmental authorities that still apply to the property.
Yes. If the property was auctioned on or after Pledge Commencement Date then please contact legalescalations@auction.com and provide them with your name, email address, and the property address.