Rules of Auction:
Rules of Auction:
- The trustee's sale officer has only
authority to conduct foreclosure sales and postponements on behalf of the
trustee.
- Any representations made by the
trustee sale officer concerning a particular property that are not made
pursuant to the express written instructions of the trustee are deemed outside
the scope of the trustee's sale officer's employment and may not be imputed to
the trustee.
- The trustee's sale officer may have
more than one sale or postponement to cry. The trustee's sale officer cannot
cry them all at the same time. Sales and postponements will be cried in the
order specified by the trustee or, absent direction from the trustee, in the
order determined by the trustee's sale officer. The crying of all sales and
postponements will be deemed to be commenced at the time the trustee's sale
officer cries the first sale or postponement of a group of one or more sales or
postponements scheduled to be conducted at the same time.
- Commencing at the appointed time
for the foreclosure, the trustee's sale officer will qualify bidders for
specific trustee's sales. All bidders (including junior lienholders, if any)
must qualify to bid at a particular sale. In the trustee's sole discretion,
junior lienholders encumbering a particular property may make special
arrangements with the trustee to qualify to bid and to submit bids by methods
not contemplated in these rules.
- To qualify as a bidder at a
trustee's sale, the prospective bidder must be in attendance when the trustee's
sale officer invites prospective bidders to qualify for that sale and must
provide the trustee's sale officer the following:
- The bidder's name, address and
telephone number;
- The maximum amount that the bidder
is willing to bid at the sale (may not be less than one dollar over the
beneficiary's opening bid);
- Conclusive evidence that the bidder
possesses funds in an amount not less than the maximum amount the bidder
intends to bid on that sale;
- Funds must be US Dollars in the form of cash, cashier's or certified check drawn on an Alaska financial institution made
payable to the order of the Trustee specified on the "Property Details" page of a property to be auctioned
(see www.usa-foreclosure.com website).
- Third parties tendering funds to
the trustee in the form of cash must comply with IRS reporting requirements
publication 1544 (for more information see www.irs.gov)
- Qualification of bidders will be
deemed closed when all timely submitted applications of potential bidders for
qualification to participate in the bidding at a particular sale have been
considered and qualified or disqualified. To be deemed "timely
submitted", applications for qualification to bid must be submitted at the
time the trustee's sale officer invites prospective bidders to qualify to bid
at a particular sale.
- Once qualification of bidders for a
particular sale is closed, the qualification process will not be re-opened to
accommodate any latecomers.
- During the bidding process, bidders
shall - absent the express permission of the trustee's sale officer - remain at
least five feet distant from the trustee's sale officer and the officer's
assistant(s), if any. Violators may be disqualified from bidding.
- Bidders believed to be colluding to
limit competitive bidding will be reported to the appropriate authorities and
will be disqualified from bidding.
- Bidding will commence upon
completion of the trustee's sale officer's reading of the sales script and
announcement of the beneficiary's initial bid.
- The trustee's sale officer will
then invite one bid from the qualified bidders at least $1 (one dollar) over
the beneficiary's minimum bid.
- After identifying the bidder and
noting the amount of the bid, the trustee's sale officer will invite a higher
bid from a qualified bidder at least $100 (one hundred dollars) over the
immediately preceding accepted bid.
- This process will be repeated until
the bidding stops and no higher bids are made.
- Bids communicated before an
invitation to bid has been given will not be accepted.
- Errors are sometimes made in the
qualification of a bidder before commencement of a trustee's sale. As a result,
all bidders wishing to remain eligible to purchase the property must remain
present until the trustee's sale officer has, one last time, verified that the
high bidder's tender of funds meets all of the qualifications for funds set
forth in Rule 5, Subsections c through e above. If, for any reason, the
trustee's sale officer or the trustee determines after the trustee's sale that
any part of the high bidder's funds is not qualified (despite qualification of
the bidder before the sale), the sale will be declared null and void and the
trustee's sale officer may either cry a postponement of the trustee's sale to a
later time and/or date or immediately call the auction again, starting with the
beneficiary's minimum bid. Only bidders already qualified to bid at the sale
are eligible to bid at the new, re-conducted sale if the trustee's sale officer
elects to immediately call the auction again. At such a sale, the high bidder
at the nullified sale will be eligible to bid at the re-conducted sale to the
extent that that bidder possesses qualified funds.
- The purchase of properties at
foreclosure sales is a speculative venture. Properties sold at trustee's sale
are sold on an as-is, where is basis, without representations or warranties of
any nature, express or implied. Bidders must conduct their own investigations
concerning the condition of title, market value, legal standing and physical
condition and history of the property. Caveat emptor ("let the buyer
beware") fully applies to these auctions.
- The successful bid will be held by
the trustee until the trustee is fully satisfied that:
- No representations to the borrower
were made by the lender or its agents before the trustee's sale that the
trustee's sale would be postponed or discontinued for any reason;
- No event, act or omission has
occurred which might expose the trustee to liability or defense costs if
the foreclosure sale is consummated and the trustee's deed is issued;
- No event has occurred, which would
render the sale unlawful, invalid or contrary to the interests of lender,
borrower and/or any junior lienholders. In the event the trustee, in its sole
discretion, is not satisfied that the conditions set forth in Subsections a.
through c. of this Rule 18 have been met, the trustee will declare the trustee's
sale null and void.
- If the trustee determines that one
or more of the conditions set forth in Subsections a. through c. of Rule 18 are
not satisfied and, therefore, declares the trustee's sale null and void, the
trustee will immediately return the submitted bid amount of the high bidder
without interest and the high bidder at the nullified sale will have no claim
against or interest in the property resulting from the nullified sale and will
have no claim for damages against the lender and/or trustee.
- During the period between the sale
and the trustee's issuance of the trustee's deed, the bid that is accepted by
the trustee cannot be withdrawn.
- In the event the trustee declares a
sale null and void, the foreclosure shall be deemed instead to have been postponed
to a date or for a time period specified in the trustee's sale script read by
the trustee's sale officer. No other notice of postponement will be
communicated to bidders qualified to bid at the nullified sale.
- The trustee - in the trustee's sole
discretion - reserves the right to observe protocols and procedures
inconsistent with and contrary to the protocols and procedures set forth in
these Rules on a case-by-case basis where doing so will benefit or prevent
damage to the lender, borrower and/or trustee.
- The act of bidding constitutes the
bidder's acceptance of these terms of sale and the terms of sale set forth in
the foreclosure sales script.
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