If you’re trying to purchase a home at a foreclosure sale, there are certain real estate terms you need to be familiar with.  One of these terms is a credit bid.  In some states you’re permitted to bid on credit by placing a certain amount down before the auction.  Once the sale is completed, you have 10 days to pay the amount due plus any additional costs incurred since the auction date.  These extra costs may include interest earned on money judgment loans.  The total outstanding balance must be paid before the credit bidder can obtain possession of the home.  If the winning bidder does not pay the total outstanding balance within 10 days after the sale, the amount of the credit bid before the auction will be lost.

Another term is called the winning bid.  The winning bid is the highest bid for the home.  Once the auction is completed, if the bidder can’t come up with the cash needed to purchase the property, the winning bidder is the next-highest bidder.

For a list of Orange homes in foreclosure, contact local Orange Realtors to assist you.

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