Playing By The Rules
          
               Government auctions may differ slightly from one to
          another, but here's the basic idea: the day of the
          auction, you register by providing your name and address
          and obtaining a bidding number.  You'll be able to get a
          copy of the auction rules and a catalog of the items for
          sale.
               Some auctions are "oral" and follow traditional
          bidding methods.  The auctioneer offers each item or
          "lot" a group of items) for bids and sells the
          merchandise to the highest bidder.  Once the bidding
          starts, don't worry about making unwanted purchases. 
          Only in the movies do you make the winning bid with a
          careless head scratch.
               "Spot" auctions are similar to oral auctions, except
          that bids are written.  In some cases, sales will be made
          by sealed bids, which must be handed in to the sales
          office by a certain time and date.
               Some auction items have "reserve" clauses.  This
          means that a seller can reject the highest bid and pull
          it from the auction block (usually when he considers all
          the bids too low).  At some auctions, properties won't be
          sold unless a minimum bid is placed; other auctions are
          "absolute;" an item is sold to the highest bidder no
          matter how low the bid is.  In either case, expect to pay
          a "buyer's premium" of 3% to 10% immediately after the
          close of the bidding.  At that point, you'll sign a
          purchase agreement and be given a certain time period to
          raise the money and close the sale.
               If you have the winning bid, terms of payment will
          vary.  Sometimes, Visa or MasterCard will be accepted. 
          (Private auctioneers may accept American Express,
          particularly at art or antiques auctions.)  Other
          auctions might require cash, money orders, traveler's
          checks, cashier's checks, certified checks, credit union
          checks, or personal checks backed by a bank letter of
          credit.  Try to find out what will be required before
          going to the auction.
               In the FDIC-RTC auction of office furniture
          mentioned above, the ad state, "Terms: Cash, certified or
          bank check only."  So that's what you would have brought. 
          The ad went on to state, "Everything 'As Is', 'Where Is'. 
          Trucker on premises for deliver."  So if you did not have
          your own means of transportation, you could hire the on-
          premises firm.
               Typically, all items are sold without guarantees,
          even though you're buying from the government.  Sometimes
          the sales catalog or the auctioneer will point out known
          discrepancies or defects.  But don't count on it.  If at
          all possible, inspect the goods before buying.  Sales
          notices or brochures or catalogs will often list the
          times and dates for inspection.  After you inspect items,
          check on their retail value.  You don't want to pay more
          at auction than you would at a store.
               Before you can take possession of your purchase,
          you'll likely have to pay for it in full.  In most cases,
          there will be a limit to the length of time you can leave
          your property at the auction site.  If you don't fulfill
          your part of the auction contract, you may have to pay a
          20% penalty.  On the other hand, if you do pay in full,
          on time, you'll get a bill of sale.  If you buy a
          vehicle, you'll receive a "certificate of sale" that will
          enable you to obtain a valid title from the state.
               Real estate auctions may have special rules on
          financing.  In some cases, you'll have a two-week
          "recision" period, but in other cases you won't be able
          to change your mind.  Some auctions will offer an escape
          clause if you can't get a loan to help you buy the
          property, but sometimes there's no way out.
               Often, the auctioneer will require that you make a
          security deposit using a bank check or a certified check. 
          Before you present a security deposit, make sure you'll
          get a refund if you don't show up or if you don't buy any
          properties.
               After you get a number for bidding, you'll need to
          get more money -- you may need cashier's checks or
          certified checks to get in the door.  You'll need those
          checks in case your bid is the winner.
               In many cases, the required deposit will be 10% of
          the winning bid.  If you decide you are ready to bid up
          to $100,000 for a property, you should bring $10,000
          worth of checks.  Split that amount into several checks,
          perhaps one $5,000 and five $1,000 checks.  Then you can
          use the exact amount you need and return the unused
          checks to the bank.  The checks should be made payable to
          yourself so you can endorse them if necessary.