What if winning bidder won’t buy?
Online bidders who have validated their identity and provided credit card information take auctions seriously and rarely try to renege on their winning bids. If they should do so, a $300 or $500 penalty will be assessed; the second-highest bidder is then contacted and allowed to purchase the property.
If the winning bidder backs out after they send the cashier’s check for the earnest money deposit, the sale cannot be cancelled without the forfeit of the deposit funds (which usually is substantial more than the credit card penalty.) The non-refundable nature of the deposit funds was made clear in the terms and conditions agreed to by the winning bidder.
