Bank-Owned (REO) 101 Webinar:
Your Guide to Bank-Owned (REO) Auctions

Everything You Need to Know to Win Bank-Owned (Reo) Auction Properties Online


Watch the webinar replay and discover how to navigate the Auction.com platform and gain the insights needed to make informed decisions, avoid common pitfalls, and succeed in REO auctions.

Why Watch This Webinar?
REO properties, also known as Bank-Owned or Real Estate Owned properties, can be complex even for seasoned investors. In this webinar, you’ll learn:

  • Step-by-step guide of the bidding process. 
  • Demonstrate the final moments of bidding on REO property. 
  • Strategies to avoid common mistakes and maximize your chances of success. 

What You’ll Learn:

Life-cycle of a Bank Owned (REO) Property (1 of 8) 

Walk through the journey of the property from delinquency, to being listed on Auction.com. Learn what you, as the bidder, should be aware of at each of these stages: 

  • Loan becomes delinquent. 
  • Foreclosure process starts. 
  • Property may revert to the servicer or bank if not sold at auction. 
  • Property becomes REO, and the servicer may list it on Auction.com to be auctioned online. 
  • You can bid on the property after it goes through the First Look Program. 

First Look Program, where applicable (2 of 8) 

  • In some jurisdictions, during a 30-day window after a property has been listed, it is open for purchase exclusively for buyers who intend to live in the property or non-profit organizations and government entities.  
  • It is geared towards strengthening neighborhoods and prioritizes eligible community-focused buyers. 

How Buying an REO Property on Auction.com Works (3 of 8) 

  • Create an account, set preferences, and get recommendations. 
  • Search, sort, and save properties of interest and review the Property Details Page. 
  • Set up Purchase Profiles and fund a Bid Deposit (applicable for specific types of auctions). 
  • Bid in weekly auctions until sold. 
  • Win the auction, generate the purchase contract, and close on the property. 

Property Details Page Walkthrough (4 of 8) 

  • Start your due diligence process on the REO auction property’s details page. 
  • Find the property’s specifications, the auction date, opening bid, and bid increments. 
  • Click on the save button to get auction-related updates and more personalized recommendations. 
  • Find market analysis metrics like local comps and rental estimates to evaluate the property’s investment potential. 
  • Don’t miss important information—scroll to the bottom for specifics on the sale terms, fees, and other crucial transaction details. 

Preparing to Bid – Registration Process (5 of 8) 

  • On the properties details page, click on the “Register for Auction” button and verify your identity. 
  • Confirm your contact details to enable real time updates about the REO properties you’re interested in. 
  • Accept the terms and complete the registration process for up to 4 properties at once. 

Preparing to Bid – Set up Your Purchase Profile (6 of 8) 

  • Set up Purchase Profiles with vesting and mailing information. 
  • You can set up multiple profiles with designated vesting information. 
  • Have your Earnest Money Deposit (EMD) and proof of funds readily available when required by the seller. 

Bidding on Auction.com (7 of 8) 

  • Track the bidding process on the Bid Box, where you can track the remaining time, current bid, bid increments, bid history, and more. 
  • Your Next Bid is automatically calculated based on the current bid, bid increment, and whether there’s a buyer’s premium. 
  • You can place bids until the Reserve is met. 
  • Take advantage of Proxy Bid before the auction starts, and we’ll handle the live bidding for you. 

Winning the Auction (8 of 8) 

  • When you win, a Congratulatory Winning Bid Box appears. 
  • Complete your Contract Information Form (CIF) within 3 hours to generate your purchase agreement. 
  • Submit the EMD within 1-2 days depending on the seller. 
  • Upload required entity documentation within 24 hours.  
  • Click on the hyperlink to access the REO Winning Bidder Resource Center to understand the post-auction closing process. 
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Click on any chapter to jump ahead 
 Watch the Webinar Replay Now: 

Frequently Asked Questions

Most of the REO properties do not disclose the reserve price. The sellers of these properties may accept something called the credit bid which is the minimum amount bidders must exceed to win the property. The reason it is not often disclosed is because sometimes a bidder may win the auction by bidding below the reserve price.  

Your best move in this scenario is to do your due diligence on the property and determine the best and highest price at which you are willing to bid. If the reserve is below that amount, you will win the property. If not, the auction will continue to the next bid, until the reserve is met, and thereafter the property will be awarded to the highest bid or reserve (whichever is higher). 

Not all our assets will have complete inspection reports revealing the title information. It is best to do your own due diligence by visiting county websites and other websites with property tax liens information. You can also consult with a local title company to do a title search. 

Information on properties that were sold at previous auctions may be found on county websites or public records. Once the deed for such property is recorded, this information becomes available to the public.  

First Look properties have a 15-day inspection period. If you win the property and are planning to live in it or are a HUD-certified non-profit or government entity, you can inspect the property as soon as you win it within a 15-day window. If you are an investor, however, you must wait until closing on the property to inspect it.  

If you win the auction and proceed with closing, you can request to have the bid deposit refunded once you close on the property.  However, if you win the auction but do not complete the purchase, the deposit may be retained, and the account may get flagged or suspended. If you don’t win the auction, you can request to get refunded immediately. 

Proof of Funds are an indication that you have an account with the full funds to purchase the property. For REO, 100% of the purchase price is not due until closing. The payment of the EMD depends on the seller – it is typically required within 1-2 days after you win the property, while some sellers do not require it until a contract is signed. 

While you are likely to receive a warranty deed, there is a possibility it may be a quitclaim deed as well - it really depends upon the type of property for sale. The type of deed applicable for the REO property you plan to bid on can be found on its Property Details Page. 

Yes, an LLC can bid if its representative, who signs the purchase agreement, has had their identity verified during the Auction.com Bidder registration.

Questions?

For further information you can reach out to our Buyer Success Specialist at
BuyerSuccess@auction.com