Glossary Of Government Auction Terms

Glossary Of Government Auction Terms-An Overview

I wanted to include a list of common terms that you may encounter when dealing with any type of government auction. These terms may change slightly, but will be used in a general sense. Most of them will not change, but you get the idea.

Types of property-property terms

1. Unclaimed Goods

The U.S. GOVERNMENT sells unclaimed goods that are lost, or otherwise abandoned by the public at large.The postal service is the main agency that sells these types of items, especially stuff that was lost in the mail. The postal service sell these items through what is called a mail recovery auction. The U.S. customs service will also sell items that are abandoned at ports of entry that may include new and used wholesale lots of various types.

2. Excess or Surplus Property

Much of the property you see in auction has been declared as excess property and has been released for sale by the government. Any particular agency may declare excess property and release these items for public sale. On occasion, items may be transferred to individual states, but if this does not occur, then the property is declared as surplus or excess and must be sold at public auction.

3. Foreclosed Property

Loan defaults by the public produce foreclosed property. If the loan was secured by the government, then this is where property will be put in auction status. Agencies include, SBA,HUD,VA,FDIC. Any of the agencies may be involved and they produce a ton of the property out there for sale at auction.

4. Confiscated, Seized And Forfeited Property

Federal law enforcement agencies have lot’s of items in their possession at any given time of the year. Seized and /or confiscated items may be eligible for return to an owner if it is determined that the owner is innocent of any charge. Items left or not returned becomes forfeited  and will be placed up for sale. There is a big difference in these terms and how they are applied.

Federal government sales are usually termed as forfeited item sales. This property is sold as-is and no warranty.

5. Real Property or Real Estate

This may include homes,condos,industrial buildings,golf courses,or an office building. Any of these can come up for sale following the seizure or non payment of loans, this qualifies them as surplus and must be placed on the sale list.

6. Personal Property

This term is used for all items that are not considered real estate. This could and does include anything like office furniture,jewelry,cars,computers,etc. Just remember that these items have no warranty and are sold as-is. Keep this in mind when looking at a computer. If a computer is the item, please ask if the hard drive has been certified wiped clean of all files. You would not want a computer from a convicted child porn case and have this computer transferred to you with this type of illegal information on it. I am sure the law enforcement agency will do this, just ask and make sure this has been done. Most of the time, the hard drive will be missing, do some homework and make sure that you know where to find and verify that the hard drive has been removed on both a pc, and laptop.

Sales Bidding Terms And Methods

1. Portfolio Sales

When grouping occurs with real estate loans, standalone loans, and real estate, this is the term used for this example.

2. Individual Sales Or Broker Sales

Private real estate brokers may be used to dispose of government owned real estate. HUD has been known to use real estate brokers to sell repossessed real estate from agencies like FHA and VA. This is done through the HUD home sales program. The US Marshals service uses real estate brokers with multi-listings capability.

3. Negotiation

Federal agencies like the U.S. Marshals service and GSA may use negotiation if a real estate price is not met. They may use this method if the bid price is not reached. While they may appraise and offer or encourage the bids meet the list price, sometimes this does not occur and negotiation takes over.

4. Fixed Price Sales

Prices at this type of auction are non-negotiable. The price is set and the individual may purchase the item at the given or marked price.

5. Spot Bids

This is a written bid type of offer. All bidders will submit their bid on the written form, and the winner is announced in public after a set time frame. You will only get one chance, it almost sounds like a lottery of sorts.

6. Sealed Bidding Auction

Submitting a sealed bid allows the highest group of bidders to participate in a traditional public auction. Depending on how the bids come in, this type of auction will start the bidding with the top sealed bid. Maybe not as much of a chance for a real low price, it’s a bit of luck you may need. Hopefully all will bid in the lower range and the starting bid will not be so bad.

7. Public Auction

The traditional live auction that we are all familiar with. Items will be shown and bid on in a set order or an order determined by the auctioneer. You must be present to bid and win.

8. Sealed Bid

This is a mail in auction. You can receive a bidders invitation and submit your bid according to the rules and regulations,descriptions and terms set forth in the federal form. On the date set for opening the bids, the winner will be announced. The person who followed all the rules and regulations will win the auction.

Back to home page

It's only fair to share...Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInPin on PinterestDigg this