I’ve heard that sometimes the “winning” bidder will refuse to give payment to the auctioneer. Has anyone seen that happen? In such cases, what are the consequences to that bidder and what happens to the property (e.g., is the auction restarted)?
There is a code section under CC2924 that addresses that. I forget the exact code section. If u can’t find it, i’ll look it up. There are penalties. I don’t know if any Trustee has enforced those provisions.
Thanks miketh, you’re right, it seems not only is there liability to the trustee, but also a criminal fine:
CC 2924h(d): “… If the last and highest bidder then fails to deliver to the trustee, when demanded, the amount of his or her final bid … , that bidder shall be liable to the trustee for all damages which the trustee may sustain by the refusal to deliver to the trustee the amount of the final bid, including any court costs and reasonable attorneys’ fees.
If the last and highest bidder willfully fails to deliver to the trustee the amount of his or her final bid …, that bidder shall be guilty of a misdemeanor punishable by a fine of not more than two thousand five hundred dollars ($2,500).”
I’d be interested to know if anyone on this forum has observed a refusal to pay and if they know what happened afterwards.