By Chip Parker, Jacksonville Consumer Attorney on Jul 3, 2008 in Featured, Foreclosure News, Foreclosure Process
Foreclosures are up 47% in Jacksonville, Florida, which has created a challenge for the Duval County Clerk’s Office. Every foreclosure ends with the home being sold on the courthouse steps, and the increased volume often means large crowds and long auctions.
Such sales are often good deals for buyers because there is little competition for the purchase of so many foreclosed homes. Lower auction prices result in mortgage companies incurring greater losses, which are passed on to the homeowner in the form of a deficiency judgment.
In what appears to be a brilliant move, Duval County Clerk Jim Fuller has announced that foreclosure sales will now take place online, in an eBay-style auction.
In an interview with First Coast News, Fuller states, “It’s like eBay or one of the other online type biddings. You can bid on something from eBay in Canada if you wanted it.”
Fuller predicts that the technology will benefit both plaintiff and defendant by enlarging the pool of potential buyers.
The First Coast News interview does not address one practical problem. According to the Duval County Clerk’s website, Chapter 45 of the Florida Statutes requires bidders, upon making a bid, to immediately produce for the Clerk’s view the required deposit equal to 5% of the final bid, in cash or cashier’s check or money order.
How will the new on-line procedure comply with this statutory requirement?