More than 15,000 foreclosures were filed in Pinellas County in 2009, and in 2010, an average of 1,000 are coming in each month.
The increase in activity led to a decision by Pinellas County Clerk of the Circuit Court Ken Burke to take advantage of recent changes in state law that allow clerks of the court to hold electronic sales, said Deputy Clerk Myriam Irizarry.
The daily online foreclosure sales begin on Oct. 4, and the monthly tax deed sales begin on Oct. 20. Realauction will provide online training and orientation sessions for bidders during September. Complete instructions will be available online at the two websites.
Irizarry said staff from the clerk’s office met with some of the people who she termed “typical bidders” and tried to incorporate their concerns into the process.
She said several clerk’s offices around the state already were using electronic sales.
“We waited to see how they did,” she said.
The wait allowed Pinellas County to take advantage of lessons learned in other counties.
Putting the sales online provides many advantages, she said. Not only does it provide a more efficient way to conduct the sales and handle the paperwork, it makes the process available to people who can’t show up in the lobby of the courthouse at 11 a.m., which is how most sales currently take place.
“People can bid online in the comfort of their home or office,” she said. “It opens it (sales) up to a whole lot more people.”
Foreclosure sales begin when the owners fail to pay their mortgage and banks file for foreclosure with the courts. When the judge orders the sale of the property, the order comes to the clerk’s office.
Typically, foreclosure bidders include banks that hold the mortgage and sometimes the property owner.
Tax deed sales originate with the tax collector’s office, which issues a tax certificate for sale after two years. The tax collector publishes notice and the tax certificates are sold – again in the lobby of the courthouse. If the owner does not pay the back taxes by the published deadline, the person who owns the tax certificate gets the property.
She said in both cases, people have plenty of notice and opportunities to regain their property.
She said moving the sales online gives people a chance to bid even before the actual date of the sale and post deposits electronically. At the end of the sale day, the prevailing bidder gets the property, she said.
The online process also protects bidders from “sniping” – those last second bids intended to beat the clock to win the bid. Any late bids that come in online add time to the auction, allowing all bidders more time.
While the process will be more convenient, opening it up to more people, bidding during foreclosure or tax deed sales is not for everyone.
Irizarry said many times the properties come with liens attached that become the responsibility of the new owners.
“These properties are sold subject to all kinds of liens,” she said. “People need to be smart and be aware.”
“Realauction has designed the sites and the sales to ensure fairness to all bidders while increasing the number of potential buyers for each property or tax deed which benefits bidders and property owners alike,” Burke said in a press release. “The clerk’s office will save time with the new online process by uploading documents once so all bidders will have simultaneous access to complete information for each case.”
Realauction will supply the software, hosting the websites and providing customer service. Potential bidders will be able to make deposits, place bids, monitor auctions and pay for winning bids online. Public terminals will be available in the clerk of the court’s offices. Proxy bidding is available with advance registration. Registration is free.
Irizarry said the staff at the clerk’s office welcomes the new service.
“This is going to help us with our efficiency and streamline the process. It’s exciting,” she said.
