REO Winning Bidder
Resource Center:
WHAT YOU NEED TO KNOW

The Contract Information Form (CIF) is required from each winning bidder every time you win a property. The information you submit via this form will be used to generate your purchase contract.

The CIF must be completed within 3 hours after the auction ends.

Any changes requested after the submission of the CIF may be denied and could result in the delay of your closing. It is critical that you complete this form with accurate information that will carry all the way through to your contract and supporting documentation, such as your Proof of Funds and receipt of Earnest Money Deposit.

If choosing your own closing company, all the information below must be provided

• Closing company name
• Closing company address
• Closing company contact name
• Closing contact email
• Closing contact phone number

Agent (Agent commission available on select properties)
If choosing to add an Agent, all the information below must be provided:

• Firm name
• Firm address
• Agent name
• Agent email address
• Agent phone number
• Agent license #
  • Verification of the agent’s license number will be complete

Proof of Funds must include an available balance equal to or greater than the total purchase price (TPP) amount. This documentation is uploaded within the Post-Auction tab of your dashboard on Auction.com.

Note: More than one account showing the required cash funds is acceptable; however, please note that the Auction.com system can only accept one upload to satisfy the POF requirement. Therefore, if using multiple accounts to document funds for closing, please include all applicable accounts in one upload.

REQUIREMENTS:

• Must be dated within 30 days at time the contract is complete
• Best practice: take into account that the seller will need approximately 3 additional days to process the contract
• Recent quarterly statements are acceptable (within the same quarter)

POF MUST BE:

• In the buyer’s (or) purchasing entity’s name that exactly matches how the name is displayed on the CIF and contract
• On official letter head from the financial institution
• Include the buyer’s information, if an online banking screenshot
• Initiated by the buyer or a gift (if 3rd party is listed on the POF)
  • Note: Certain sellers will not accept gift funds
  • If you plan on using gift funds, please contact the Buyer Experience Team beforehand to determine if the property you are purchasing allows them. If accepted by the seller Gift Letter Must Include:
    • Account holder’s name
    • Amount that will be gifted at the time of closing

ACCEPTABLE FORMS OF POF:
Bank statements, cashier’s checks, hard money loans (not collateralized by the property), 401K, retirement accounts, CDs, and IRAs (can be combined), loan acceptance letter with no contingencies (for non-cash transactions, are accepted only if the property was marked financeable on the Auction.com marketplace).

UNACCEPTABLE FORMS OF POF:
Gift letters (unless accepted by the seller), personal checks, loan acceptance letter with contingencies, funds from non-contract buyers.

COMMON REASONS WHY YOUR POF WAS NOT ACCEPTED:

• Missing Buyer Name
• Name on documents does not exactly match the name on the contract or CIF
• Funds not in Buyers Name
• Unqualified Type (loan approval on cash transaction)
• Wrong document type
• Amount missing
• Document not dated within 30 days
• Contingencies were noted in the loan approval letter
• Insufficient Funds
• Not legible
• Altered document

Each seller may have a slightly different policy on when it requires Earnest Money to be deposited with the title company and when receipt of the deposit is uploaded.

In general, sellers will require the receipt of the EMD to be uploaded within a day of either the auction ending, buyer’s signature on the contract, or seller’s signature on the contract. In some cases, confirmation of EMD is required to submit your offer to the seller.

Because these requirements can vary, it’s important that you are prepared to deposit the EMD quickly after the auction. You can refer to your contract for the specific requirements for the property you purchase. The receipt of EMD is uploaded within the Post-Auction tab of your dashboard on Auction.com

• EMD must come from the name of the Buyer vesting on the contract (names must match exactly).
• If you are purchasing as an individual, the funds must be debited from the account of that individual.
• If you are purchasing as an entity, the funds must be debited from the account of that entity.
• EMD must be in certified funds (cashier’s check or wire ONLY).

PRO TIP: Before your bank sends a wire, give specific information of what will need to show on the receipt of EMD. It can be difficult to get this information added after the wire is sent.

FOR WIRES:
The proof is the confirmation from the bank that the wire was initiated (including Fed Ref #).
Must include the following:

• The name from which the funds were debited from
• The exact amount sent
• The beneficiary of the funds (Seller’s closing office)
• The address of the property you are purchasing

FOR CASHIER’S CHECKS:
A copy of the cashier’s check made payable to the closing company and the receipt for the certified mail.
Must include the following:

• Name from which the funds were debited from
• Exact amount sent
• Beneficiary of the funds (Seller’s closing office)
• Property address you are purchasing

COMMON REASONS WHY YOUR EMD WAS NOT ACCEPTED

• Invalid EMD Receipt Type
• Missing Remitter Name
• Missing Beneficiary Name
• Missing Amount
• Invalid Remitter Name
• Invalid Beneficiary name
• Missing property address
• Not legible
• Wrong document type

Regardless of the type of entity making the purchase, formal documents are required within one day of the auction and must be provided before the contract can be submitted to the seller for review and execution. These documents are required to help the seller ensure that the person executing on behalf of an entity has the proper authority to enter into the purchase contract.

Download our printable checklist to preview all the information you’ll need to submit. Required documents are uploaded within the Post-Auction tab of your dashboard on Auction.com

Some sellers may require additional information, so check with your closing company. Please note this section is for informational purposes only. It is not intended to provide legal advice or recommendations.

Limited Liability Company (LLC) – A limited liability company encompasses the tax treatment of a partnership or sole proprietorship and the liability treatment of a corporation. Please download the requirements document for this entity.

• If LLC: Certificate of Good Standing, Articles of Organization, Operating Agreement, Real Estate Signing Resolution, Verification of Ownership, Interest, Multiple Name Verification, and affiliated entity docs.

Incorporation (INC) – A corporation is an entity that is separate and apart from its owners, and there are various types of corporations. Please download the requirements document for this entity.

• If Corporation: Certificate of Good Standing, Articles of Incorporation, Bylaws, List of Officers, Real Estate Signing Resolution, Verification of Ownership Interest, Multiple Name Verification, and all affiliated entity docs.

Limited Partnership – A limited partnership (LP) consists of two or more partners who operate the company jointly and each partner’s liability may be limited to each partner’s level of investment. Please download the requirements document for this entity.

Trust – A trust is an entity that acts as a fiduciary that manages and transfers property for the benefit of the beneficiaries. Please download the requirements document for this entity.

• If Trust: Certification of Trust or Declaration of Trust or Notarized Trust Agreement, Real Estate Signing Resolution, and affiliated entity docs.

General Partnership – A general partnership is an arrangement consisting of two or more people who agree to share in all assets, profits, and financial and legal liabilities of a business. Members must sign a Partnership Agreement. Please download the requirements document for this entity.

Limited Liability Limited Partnership (LLLP) – Limited Liability Limited Partnership consists of one or more general partners and one or more limited partners. Typically, while the general partners manage the LLLP, the limited partners’ interest is purely financial. Please download the requirements document for this entity.

401K Plan – A 401k plan is an employer-sponsored investment savings account funded with post-tax money along with the employer’s contribution limits. Please download the requirements document for this entity.

• If 401K: Adoption Agreement, Plan Summary, Real Estate Signing Resolution, Plan Sponsor or employee documents, and all affiliated entity docs.

Pension Plan – A pension plan is a type of retirement plan in which an employee adds money into a fund that is matched (or contributed to) by an employer based on employee income and length of employment. Please download the requirements document for this entity.

IRA – An individual retirement account (IRA) is a form of individual retirement plan that provides tax advantages for retirement savings. There are several different types of IRAs, with each having its own tax implications and eligibility requirements. Please download the requirements document for this entity.

• If IRA: IRA Statement, IRA Account Application, Direction of Investment, Custodial Company Articles of Organization, Custodial Company Instructions for Investing in Real Estate, Custodial Company Corporate Resolution Authorizing Signatory for Purchase, Real Estate Signing Resolution, and Multiple Name Verification.

To buy property under separate entities, the following Auction.com documents may be required. Check the links for requirements by entity type above for more details.

• Multiple Name Verification Document
• Real Estate Signing Resolution Document
• Verification of Ownership Interest Document

To learn more, download the Residential Entity Requirements document.