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Click on a term from the list below to read its definition. For more help please refer to Frequently Asked Questions.
Assignment
Bid History
Bid Increment
Bid Optimization Model ©
English Auction
Extension Time
High Bid
Lot
Maximum Proxy Bid
Minimum Bid
Minimum Reserve Price (MRP)
Opening Bid
Pool
Principal Balance
Proxy Bid
Qualified Bidder
Sealed Bid Offering
Time Remaining
Unconditional Bid
Winning Bid
Assignment
A legal document that effects a transfer of title, rights and other interests to another party.
Bid History
A list of all bids you have submitted on a given pool to date. You may access this information by clicking on the Bid Form tab.
Bid Increment
The minimum amount by which a Bidder must raise the High Bid. (see also High Bid, Minimum Bid) Example: The current high bid is $100,000. The bid increment is $10,000. You must bid at least $110,000 for your bid to be considered.
Bid Optimization Model©
First Financial Network, Inc.'s proprietary bid analysis software which analyzes all bids to determine what scenario of bids maximizes sales proceeds
English Auction
An auction format in which bidders submit successively increasing bids. All bids must increase by the stated bid increment amount plus the high bid amount. The winning bid is the highest bid. Also known as Open or Ascending Price, the most common form of auction in the United States.
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Extension Time
The amount of time an auction is prolonged should a bid be tendered within the final, closing minutes of the bidding event. The amount of time comprising the Extension Period is defined in the Terms and Conditions of Sale. Example: The auction is scheduled to close at 3:00 pm. A bid is received at 2:55 pm. The Extension Period is 10 minutes as previously defined in the Terms and Conditions of Sale. The auction is prolonged until 3:05 p.m. minutes or until no additional bids are received within
High Bid
The highest value offered for a pool.
Lot
A single asset or multiple assets comprising a pool. Bids are tendered for all asset(s) contained in the Lot. (See also Pool)
Maximum Proxy Bid
The highest value a Bidder is willing to tender for a given pool as defined in its Proxy Bid. (See Proxy Bid)
Minimum Bid
The lowest value a bidder can tender for a pool. This amount is equivalent to the amount of highest bid plus the Bid Increment amount. For the Opening Bid, the Seller defines the amount. (See Opening Bid)
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Minimum Reserve Price (MRP)
The minimum purchase price acceptable to the Seller. The Seller may reject any and all bids less than the MRP.
Opening Bid
The lowest amount a Seller is willing to accept to start the bidding for a given pool.
Pool
A single asset or multiple assets comprising a Lot. Bids are tendered for all asset(s) contained in the pool. (See also Lot)
Principal Balance
The face amount of a loan evidencing the amount repayable, exclusive of interest, according to the terms of the Note securing the obligation.
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Proxy Bid
A predefined maximum amount a Bidder is willing to offer for a pool. The bid is automatically increased as necessary to either win the pool or reach your Maximum Proxy Bid.
Example 1: A pool has a Minimum Reserve Price of $10,000. The Bid Increment is $1,000, the High Bid is $11,000 and the Proxy Bid is $25,000. The amount Loan Sale Network would bid on your behalf is $11,100. If a subsequent bid were received for $25,000, you would have to tender another bid since the Maximum Proxy Bid had been reached. However, if the High Bid were $5,000, a bid of $10,000 would automatically be tendered on your behalf.
Example 2: Standard Proxy
Maximum Proxy Bid $300,000
Bid Increment $10,000
Minimum Reserve Price $200,000
High Bid $225,000
Proxy Bid
(Amount Automatically Bid on your behalf) $235,000
Example 3: Bidding Exceeds Maximum Proxy Bid
Maximum Proxy Bid $200,000
Bid Increment $10,000
Minimum Reserve Price $200,000
High Bid $200,000
Proxy Bid
(Amount Automatically Bid on your behalf) $0
Requires a new bid
Example 4: Unfulfilled Minimum Reserve Price
Maximum Proxy Bid $300,000
Bid Increment $10,000
Minimum Reserve Price $200,000
High Bid $150,0000
Proxy Bid
(Amount Automatically Bid on your behalf) $200,000
Qualified Bidder
A bidding entity that has been qualified by FFN and has complied with the Terms and Conditions of the sale as evidenced by fulfilling certain contractual and monetary obligations. These qualifications include, but are not necessarily limited to, the following (See Terms and Conditions of Sale): Execution of Confidentiality Agreement Execution of Certification by Proposed Purchaser Payment of Bid Deposit
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Sealed Bid Offering
An auction format in which competing bidders are not privy to other bids. Bids are submitted by a certain agreed upon date and time, and then opened with the award going to the highest bidder. Also known as "First Price" auction.
Time Remaining
The amount of time allotted for an auction and which is increased only through a bid submitted according to the terms agreed upon for extending the bidding period. (See Extension Time).
Unconditional Bid
A single bid submitted once, that is not automatically increased. The Bidder must tender a new bid to raise the bid.
Winning Bid
The highest bid tendered for a pool, which conforms to the Terms and Conditions of the sale and exceeds the Minimum Reserve Price as mandated by the Seller.
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