Some lenders have a procedure now that when a seller wants to do a short sale they MUST have the LOFT up on Auction.com.
What they are trying to do is maximize the price of a short sale and make sure it gets the highest amount possible. It seems like a good thing for the bank, but the buyer is the one that pays the price having to pay an extra 5% on top of the final winning bid.
If you ever bid on eBay this is a bit different. Even though the auction has an ending date, it does not finish until there is only one bidder. Every time that there is a bid the clock resets to a 2 minute count down. That can be very nerve racking. We had one of our buyers in the office and we were watching and bidding live. He ended up getting the place, but the clock reset several times before we were the winner. We had in escrow at $577,000 before the auction and the buyer ended up at $608,000 plus 5%, so it costed him much more.
