House Auction?

[Gastines]

Has anyone bought a house by way of an Auction? I went to view one I was interested in and nearly had a fit when I read the small print. If I understood it correctly, you first have to give the Auctioneer/Notaire a Bankers Draft for aprox. 20% of the estimated price,to be able to bid.If you are successful, you can be gazumped by anyone who wants to bid 10% more in the next month!! Then if they think the price is too low they can hold another auction. Seems a bit tough if you have to have finances in place, and in the end lose out. Perhaps I'm reading it wrongly?

Regards.By St.Malo.

[Val_2]

Some english people we are friends with nearby, bought a house in auction and I remember them saying it was quite a minefield of understanding at the time. I think you are correct about the 20% being in place as this deters time wasters and I also seem to remember something about if there is any mortgage left onthe property etc you can also be liable to pay that off but a notaire would sort that out first I would have thought. You can get some very good bargains at good prices in auctions if you know what to do and have the money ready. There must obviously be a reserve price too and if this isn't reached to satisfy creditors etc then I expect the sale can be held again. What they did get though was a property that had just been left in a state by the previous "owners" who had fled the country to go elsewhere without paying their mortgage and there was a fair bit of damage to repair at their own expense.