The bid deposit hold is one of the steps we take to help ensure that the bidding pool is comprised of serious bidders.

The bid deposit is a hold placed on your credit and not a charge, unless you fail to fulfill certain obligations if you are chosen as the bidder to proceed with the transaction. If you are not the selected bidder, the hold will be removed within 4-7 business days after the auction cycle has ended. If you are the selected bidder, the bid deposit will be released once we receive your signed purchase and sale agreement (or PSA) and we receive confirmation from the third-party escrow agent that your earnest money deposit (or EMD) was received within the time frame set forth in the PSA. If you are the selected bidder and you fail to deliver your signed PSA and earnest money deposit within the required time frame, the hold will be converted into a nonrefundable charge on your credit card in the amount of the bid deposit.

The bid deposit hold will remain in place for the duration of the auction cycle. Once the auction cycle ends, one bidder may be chosen by the seller as the "selected bidder" to proceed to contract. If you are the selected bidder, the bid deposit will be released once we receive your signed purchase and sale agreement (or PSA) and we receive confirmation from the third-party escrow agent that your earnest money deposit (or EMD) was received within the required time frame. If you are not the selected bidder, the hold will be removed within 4-7 business days after the auction cycle has ended.

Yes, a bid deposit hold is required once for every applicable property in order to place a bid on that property.

No. Once the bid deposit hold is placed, the amount will be held through the end of the auction cycle, even if you do not place any bids on that property in the auction cycle. Please be sure that you want to place a bid on a property before you complete the bid deposit process.

If you are the selected bidder and you fail to deliver your earnest money deposit within the required time frame, the hold will be converted into a non-refundable charge on your credit card in the amount of the bid deposit.

The one-time non-refundable $1 charge is another mechanism used to verify your intent as a serious bidder with the intent to purchase the property if your bid is ultimately selected.

There are a couple of reasons why this might happen. 1) The length of the auction requires a reauthorization of the original bid deposit hold. This reauthorization might initially look like an additional hold. However, the reauthorization simply replaces the original bid deposit hold. 2) You have placed a backup bid or offer on a property after the auction ends. Placing a backup bid or offer will require a new bid deposit hold. When placing a backup bid or offer, the previous bid deposit hold is released and a new bid deposit hold is authorized. Please keep in mind that your bid deposit hold will remain in place until your backup up bid or offer expires or the Seller accepts your backup bid or offer. If your backup bid or offer is selected, the bid deposit will be released once we receive your signed purchase and sale agreement (or PSA) and we receive confirmation from the third-party escrow agent that your earnest money deposit (or EMD) was received within the required time frame. Please allow 4-7 business days for this to be reflected on your credit card. However, if you are the selected bidder and you fail to deliver your signed PSA and earnest money deposit within the required time frame, the hold will be converted into a nonrefundable charge on your credit card in the amount of the bid deposit.

Most bank owned homes: You'll receive an email within 48 hours with the name of your Document Processor – your guide from this point on through the closing process – and details on next steps. You can also view this email from your My Hubzu account.
Note: An email does not constitute final acceptance of your bid or offer. The documentation process, including all signatures on the Purchase and Sale Agreement, must be completed before acceptance is considered final. Short sales/properties with Special Terms, including some bank owned homes: You'll receive an email notification of the next steps in the contract process.

Most bank-owned homes: The email you receive after you are the selected bidder in an auction or your offer is approved will contain a link that will allow you to digitally sign the Purchase and Sale Agreement (PSA). You must review, sign and confirm this digital version within 48 hours of receiving the link. For more information, see our FAQ section on eSignatures below. Note: For certain bank-owned properties, you may receive an email with the PSA as an attachment instead of an eSignature link. In this case, you must review, sign and send back the PSA via Hubzu within 48 hours of receiving the email. A link to the upload page is included in the email. Short sales/properties with Special Conditions Apply (Special Terms), including some bank-owned homes: You'll receive notification of the next steps in the contract process.

Most bank owned homes: After you receive notification that your bid was the selected bid, we will email you with instructions on how to complete and submit the Purchase and Sale Agreement (PSA). You must sign the PSA within 48 hours of receiving these instructions. Note: An email does not constitute final acceptance of your bid or offer. The documentation process, including all signatures on the Purchase and Sale Agreement (PSA), must be completed before the prospective buyer's bid is considered accepted by the seller. The seller reserves the right to receive and document backup bids/offers at any time. Short sales/properties with Special Conditions Apply (Special Terms), including some bank-owned homes: The buyer and their agent will work with the listing agent directly to sign the PSA. For short sale properties, the buyer and seller will also be required to sign a PSA Addendum.

Most bank owned homes: If you fail to sign and return the Purchase and Sale Agreement within 48 hours, the seller has the option to unilaterally cancel your offer or bid. Short sales/properties with Special Servicing Conditions (Special Terms): The listing agent holds the responsibility for informing the buyers about the signing requirements. Note: Failing to return the PSA agreement in the time required may lead to indefinite suspension of your account.

Most bank owned homes: The minimum required earnest money deposit is based on a pre-determined percentage of your selected bid/offer amount. The required deposit ranges from 1% to 7% but is never less than $1,000 or more than $15,000 and will be applied to the purchase price at closing. To view the earnest money deposit percentage for a specific property, visit the property's details page. Note: If you are unable to comply with the terms and conditions of the executed Purchase and Sale Agreement (PSA), your earnest money deposit may not be refunded. Properties with Special Servicing Conditions Apply (Special Terms): The minimum required earnest money deposit is calculated by the seller and is outside the control or discretion of Hubzu. This minimum amount will be specified in the PSA and may be held in a licensed real estate agent's escrow account or with an escrow company or closing agent.

The Closing Agent (Closing Attorney, Title Company or Escrow Office) named in the Purchase and Sale Agreement (PSA) must receive the earnest money deposit within 48 hours of your receipt of the fully executed PSA. Please refer to the PSA for more information. Properties with Special Terms: The PSA designates where the buyer should send the earnest money deposit.