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Federal Government Surplus Auctions
Government Auctions and Surplus Property
Federal Government Auctions
Looking for a bargain? Year round, the federal government offers hundreds
of millions of dollars worth of property and goods -- from animals to real
estate -- at remarkable prices. The Customs Service sells seized property
-- jewelry, camera, rugs -- anything brought in from another country. The
IRS auctions off everything imaginable -- boats, cars, businesses. The
U.S. Postal Service sells unclaimed merchandise, including lots of books.
There is one story to inspire: a New Yorker bought surplus parachutes from
the Pentagon and became a supplier selling clothesline cord. If you are
looking for a business, try the Small Business Administration, which sells
equipment and businesses it has acquired through foreclosure. Want a good
deal on a house? U.S. Department of Housing and Urban Development offers
repossessed homes -- sometimes for practically nothing -- on government
foreclosures.
Very few people know about these unique bargains because the federal
government doesn't advertise them. Described below are 30 of Uncle Sam's
Red Tag Specials. Contact the appropriate offices for more information.
And remember, if you don't find what you want, stay at it. This is
ongoing, and new merchandise and property are coming in all the time.
* Burros and Horses: Bureau of Land Management
Division of Public Affairs
Bureau of Land Management
U.S. Department of the Interior
Room 5600, 18th & C Sts., N.W.
Washington, DC 20240 202-208-5717
Wild Horse and Burros Program Office 202-653-9215
Or contact your local Bureau of Land Management office. The
"Adopt-a-Horse" program is aimed at keeping wild herds at in the West at
manageable levels, and allows individuals around the country to purchase a
wild horse for $125 or a burro for $75. The animals usually have their
shots. Aside from the purchase price you only need pay for shipping. If
you live west of the Mississippi, call the Program Office above to find out
which of the 12 adoption satellites are nearest you. If you live east of
the Mississippi, call 703-461-1365 to arrange an adoption. Representatives
of the BLM travel around the country, so that you don't have to travel to
Wyoming to participate. The only qualifications for adoption are that you
have appropriate facilities to house the animal, that you are of legal age
in your state, and that you have no record of offenses against animals.
The horses and burros may not be used for any exploitative purposes such as
rodeos or races, nor may they be re-sold. Upon adoption, you sign an
agreement to that effect, and no title of ownership is given until one year
after an adoption. Animals are usually from two to six years in age, and
must be trained. The offices listed above have a brochure called So You'd
Like to Adopt a Wild Horse or Burro on the "Adopt-a-Horse" program that
gives more details.
* Christmas Trees, Seedling, Wooden Poles
and Posts: Bureau of Land Management
U.S. Department of the Interior
Bureau of Land Management
Division of Forestry
1849 C Street, N.W.
Washington, DC 20240 202-653-8864
or U.S. Forest Service 202-205-1657
Contact your local Bureau of Land Management (BLM), U.S. Department of
Interior. In the 11 Western states, the Bureau of Land Management has a
program for obtaining low-cost Christmas trees from Federal lands. By
contacting your local BLM office, you may obtain a permit for a nominal fee
(usually $10) to cut a tree for your own use. You will be given a map with
directions as to which are permissible areas for tree-cutting. Non-profit
organizations may also qualify. Non-profit may get free use permits and
cut larger amounts. Trees must be for their own use and may not be resold
at fundraisers.
In addition, under the Minor Forest Products program, you may collect or
cut specified small trees for use as poles or posts; or, you may obtain
cactus or plant seedlings from areas of natural growth where there are
abundant supplies -- again at a very low cost. These items are free for
non-profit organizations for their own use. Permits for commercial usage
may also be available. Cost depends on market value. Below are the
addresses and phone numbers of Regional Bureau of Land Management Offices.
Alaska
222 W. 7th Ave. #13, Anchorage, AK 99513-7599; 907-271-5555.
Arizona
3707 N. 7th Street, P.O. Box 16563, Phoenix, AZ 85001; 602-640-5504.
California
2800 Cottage Way, E-2841, Sacramento, CA 95825-1889; 916-978-4746.
Colorado
2850 Youngfield St., Lakewood, CO 80215-7076; 303-239-3667.
Eastern States
350 S. Pickett St., Alexandria, VA 22304 703-461-1369.
Idaho
3380 Americana Terrace, Boise, ID 83706 208-384-3014.
Montana
Granite Tower, 222 N. 32nd St., P.O. Box 36800, Billings, MT 59107;
406-255-2913.
Nevada
850 Harvard Way, P.O. Box 12000, Reno, NV 89520-0006; 702-785-6586.
New Mexico
Joseph M. Montoya Federal Bldg., South Federal Place, P.O. Box 1449, Santa
Fe, NM 87504-1449; 505-988-6316.
Oregon
1300 NE 44th Ave., P.O. Box 2965, Portland, OR 97208-2969; 503-280-7287.
Utah
P.O. Box 45155, Salt Lake City, UT 84145-0155; 801-539-4019.
Wyoming
2515 Warren Ave., P.O. Box 1828, Cheyenne, WY 82003 307-775-6011.
* Federal Depository Insurance Corporation (FDIC)
Federal Depository Insurance Corporation
4340 Connecticut Ave., NW
Washington, DC 20008 202-537-2250
The FDIC sells at auctions the furnishings and equipment of failed
commercial banks. Consult the blue pages in your phone directory for the
regional FDIC office nearest you. Each regional office handles their own
personal property disposal. Professional auctioneers are contracted to
auction off the accumulation of desks, calculators, chairs, computers and
other furnishings that banks normally have. These auctions will be
advertised in the auction section or classifieds of local newspapers.
The FDIC also holds open for offers costly commercial property and real
estate. For a full catalog of these listings across the country, which
also includes homes over $250,000 call 1-800-678-3342 or 1-800-445-3683.
They will send The Liquidation Book which is the marketing list that is
most current. All the property the FDIC has to sell is in this book, but
if you are interested in bidding on a house under $250,000, it is wise to
ask them for the phone number of the FDIC sales office in your area that is
in charge of selling them, and then contact them directly. About 97
percent of the listings in it are commercial offerings such as hotels,
offices, and industries. Sales of commercial real estate are advertised
nationally by the FDIC in such papers as The Wall Street Journal.
* FHA Money May Be Waiting For You
DHUD-Distributive Shares Division
541 7th Street, SW
Washington, DC 20410
HUD Locator 202-708-1422
DHUD-Insurance Operation Division 703-235-8117
If you or someone in your family has successfully paid off a mortgage on a
house, there may be money waiting for you at the Department of Housing and
Urban Development. HUD oversees the Federal Housing Administration (FHA)
which insures mortgages that your bank lends to house buyers. Each year
FHA predicts how many people will default on their loans, and based on that
prediction, they calibrate how much mortgage insurance home buyers will pay
during that year. If it turns out that there are fewer loan defaults than
FHA predicted, those borrowers that have continued to pay their mortgages
have what are called "Mutual Mortgage Dividend" checks coming to them upon
completion of the loan agreement. Call 703-235-8117 if you think you are
due a one time mortgage insurance premium refund or a distributive share.
Another way you may qualify for an FHA insurance refund is to have taken
out, say, a 30 year mortgage and paid the entire FHA insurance premium up
front instead of in installments over the entire period of the loan. If
you have completed the loan agreement in less than 30 years, you may have
money coming back to you since you didn't use the insurance for the entire
30 years you've already paid for. In most cases, though, you have to carry
a loan for at least 7 years to qualify for a dividend, and the longer you
have a loan, the more likely it is that you will qualify for a dividend
check.
In these cases where you prepay all of your mortgage insurance premium up
front, your bank should let you know that you may eventually be eligible
for a mutual mortgage refund upon fulfillment of the loan agreement. Also,
after you have paid off your loan, your bank should notify HUD, who in turn
should notify you if you have any refund coming, usually within six months.
However, if HUD cannot locate you, they will add your name to a list of
other individuals who cannot be located but have HUD money coming to them.
Through the Freedom of Information Act many individuals have gotten their
hands on copies of this list from HUD and gone around the country tracking
down the people and charging them fees to recover this HUD money.
Depending on the size of the original loan, your dividend refund could be
several thousand dollars, and since some of these "bounty hunters" may ask
for up to 50% of the refund just for making a phone call that you could
make yourself, you could be losing out on a substantial sum of money by
letting them do it. In fact, all you have to do to get the same list the
bounty hunters are using is to call 703-235-8117. DHUD staff will mail to
you, free of charge, an "information package" which contains the names of
all the mortgagors in the state in which you reside (or request the list
for), forms and basic information you would need to apply for a refund.
If you feel you may have money coming to you, or if a member of your family
who took out a mortgage is now deceased and you are an heir, try to locate
the original loan contract number, and then make a few calls. To apply for
a refund you will need the loan number and FHA case number, which you can
find on the Recorded Deed of Purchase, kept at your local county
courthouse.
* Firewood: U.S. Forest Service
U.S. Forest Service
Department of Agriculture
14th & Independence Ave. S.W.
Box 96090
Washington, D.C. 20090-6090
Operations and Technology Information 202-205-0855/0857
Contact your nearest National Forest Office (list below) to find out about
the firewood program and to learn which national forest is near you. Also,
ask these regional offices about firewood from state forestry organizations
and private timber companies. Ask about availability of firewood before
you make the trip. In any National Forest, you may pick up downed or dead
wood for firewood for a nominal charge of $5 per cord, $10 minimum fee,
after requesting a permit from the Forest of your choice. You may phone to
request the permit, and must have it in your possession while collecting
the wood. The Forest Service allows you to gather 2-10 cords worth of
wood. Six cords are equal to 12 pick-up truck loads. Wood may not be
collected for commercial purposes. All permits to cut wood are issued
locally, so you must purchase permits directly from the district ranger.
Regional offices do not sell permits.
Northern Region
Federal Building, 200 East Broadway St., P.O. Box 7669, Missoula, MT 59807;
406-329-3511. Includes Northern Idaho and Montana.
Intermountain Region
Federal Building, 324 25th St., Ogden, UT 84401; 801-625-5354. Includes
Southern Idaho, Nevada, Utah, and Western Wyoming.
Southern Region
1720 Peachtree Rd. N.W., Atlanta, GA 30367; 404-347-4191. Includes
Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi,
North Carolina, Puerto Rico and the Virgin Islands, South Carolina,
Tennessee, Texas, Virginia.
Rocky Mountain Region
11177 West Eighth Ave., P.O. Box 25127, Lakewood, CO 80225; 303-236-9431.
Includes Colorado, Nebraska, South Dakota, Eastern Wyoming.
Pacific Southwest Region
630 Sansome St., San Francisco, CA 94111; 415-556-0122. For California.
Pacific Northwest Region
333 SW First Street, P.O. Box 3623, Portland, OR 97208; 503-326-2955.
Includes Oregon and Washington. (Mt. Hood is the most popular national
forest and may be sold out of permits. Call them in advance at
503-666-0700. Try also the state and private timber units at 503-326-2727
or the U.S. Forest Service at 503-326-2877.)
Southwestern Region
Federal Building, 517 Gold Ave. S.W., Albuquerque, NM 87102; 505-842-3292.
Eastern Region
310 West Wisconsin Ave., Room 500, Milwaukee, WI 53203; 414-291-3693.
Includes Illinois, Indiana, Ohio, Michigan, Minnesota, Missouri, New
Hampshire, Maine, Pennsylvania, Vermont, West Virginia, Wisconsin.
Alaskan Region
Federal Office Building, 709 West Ninth St., P.O. Box 21628, Juneau, AK
99802; 907-586-8863. Abundance of wood results in extensive free-use
permits.
* Homes: Department of Agriculture (USDA)
USDA, FmHA
Single Family Housing Division
14th & Independence Ave., S.W., Room 5334
Washington, DC 20250 202-382-1474
Contact your local Farmers Home Administration Office. There are 1900
around the country. The Farmers Home Administration, part of the
Department of Agriculture, makes low-interest loans available to qualified
applicants to purchase homes or farms in rural areas (among other things).
Rural settings are small towns with a population under 10,000. Check to
see if the locale you are interested in qualifies. Sometimes areas of up
to 25,000 in population are approved. Farmers Home Administration is also
charged with disposing of properties that are foreclosed. First, they make
any necessary repairs to the properties, then offer them for sale to people
who have the same qualifications as those applying for FmHA loans (based on
income, credit worthiness and other criteria). Eligible applicants also
qualify to purchase the properties at special low FmHA interest rates (as
low as 1%). If no eligible applicants purchase a property, it is then put
up for sale to the general public at competitive prices. If the property
is not sold within 10 days, it may be reduced by 10%. Sales to the general
public may be through FmHA offices or through private real estate brokers.
FmHA "eligible applicants" must reside on the property purchased; but if no
such eligible buyers are available, other buyers may use it for investment
or rental purposes. A separate program applies for farms. This program is
designed to serve people of modest income and good credit who don't have
enough to make a down payment on a home. Credit evaluation is done on the
most recent 12 months. Bankruptcy is not looked at after 36 months. The
current loan budget is one-third of what is was in the 70's. This program
is being changed to eventually act as insurers to guarantee loans from
professional lenders. Applicants may work in a city if their home is
rural.
* Homes: Department of Housing and Urban
Development
U.S. Department of Housing and Urban Development
451 7th St. S.W.
Washington, DC 20410-4000
HUD Locator 202-708-1422
Multi-Family Property Dispositions 202-708-1220
Single-Family Property Dispositions 202-708-1832
HUD homes are properties HUD owns as a result of paying the balance on
foreclosed FHA insured home mortgages. Any qualified buyer can purchase a
HUD home. Generally, your monthly mortgage payment should be no more than
29% of your monthly gross income. Many HUD homes require only a 3% down
payment. You can move into some HUD homes with a $100 down payment. HUD
will pay the real estate brokers commission up to the standard 6% of the
sales price. HUD may also pay your closing costs. HUD homes are priced at
fair market value. Consult your local newspapers for HUD listings; or,
your regional HUD office, listed below; or, the real estate broker of your
choice.
HUD's Property Disposition facilities are located within ten regional
offices and various field offices around the country. Contact the nearest
office for details (see listing below). Frequently, HUD will advertise
upcoming auctions of foreclosed properties in a local newspaper. The
properties may be apartments, condominiums, or various kinds of
single-family homes. The condition of these properties varies widely,
including some that are little more than shells; and that, of course,
affects the price. Some may be located in less than desirable
neighborhoods; but others may end up being bargains, either as investments
or personal residences. Bids are placed through private real estate
brokers, who then submit them to HUD. Some offers for HUD homes are made
to the seller and there may be negotiations. Offers for other HUD homes
are done by bids placed during an "Offer Period." If you bid the full
asking price, it may be accepted immediately. Otherwise, all the bids are
opened at the close of the "Offer Period." The highest bidder wins.
Contact the participating broker of your choice to show you the property
and submit your bid. HUD broker contracted services are free to
prospective buyers. Earnest money is a flat scaled fee ranging from
$500-$2000 and must accompany the bid. Bidders must furnish their own
financing. HUD stresses that properties sell "as is," so HUD will not make
any repairs. It is up to a potential buyer to determine the value and
condition, although the listings will state major problems.
Newspaper ads list houses that will be available for the next ten days, as
well as others that did not sell in previous auctions. Listings include
addresses, number of bedrooms and bathrooms, and suggested prices.
Remember that HUD contracts are binding and non-negotiable: once your bid
has won, there's no turning back. For a step by step buying guide to
purchasing HUD owned homes, call the HUD Homeline, 1-800-767-4483, and
request the brochure, A Home of Your Own. To learn about other programs at
HUD that may be useful to you, call 202-708-0685.
HUD Region I (Boston)
Thomas P. O'Neill Federal Building, 10 Causeway St., Room 375, Boston, MA
02222-1092; 617-565-5234. Field offices are located in: Bangor, ME;
Burlington, VT; Hartford, CT; Manchester, NH; and Providence, RI. Ask for
Property Distribution Division in these offices.
Region II (New York)
HUD New York Regional Office, 26 Federal Plaza, New York, NY 10278-0068;
212-264-8068. Field offices located in: Albany, NY; Buffalo, NY; Camden,
NJ; Hato Rey, PR; and Newark, NJ.
Region III (Philadelphia)
HUD Philadelphia Regional Office, Liberty Square Building, 105 South
Seventh St., Philadelphia, PA 19106-3392; 215-597-2560. Field offices
located in: Baltimore, MD; Charleston, WV; Pittsburgh, PA; Richmond, VA;
Washington, D.C.; and Wilmington, DE.
Region IV (Atlanta)
HUD Atlanta Regional Office, Richard B. Russell Building, 75 Spring St.,
S.W., Atlanta, GA 30303-3388; 404-331-5136. Field offices located in:
Birmingham, AL; Columbia, SC; Coral Gables, FL; Greensboro, NC; Jackson,
MS; Jacksonville, FL; Knoxville, TN; Louisville, KY; Memphis, TN;
Nashville, TN; Orlando, FL; and Tampa, FL.
Region V (Chicago)
HUD Chicago Regional Office, 626 West Jackson Blvd., Chicago, IL
60606-6765; 312-353-5680. Field offices are located in: Cincinnati, OH;
Cleveland, OH; Columbus, OH; Detroit, MI; Flint, MI; Grand Rapids, MI;
Indianapolis, IN; Milwaukee, WI; Minneapolis/St. Paul, MN; and Springfield,
IL.
Region VI (Fort Worth)
HUD Fort Worth Regional Office, 1600 Throckmorton, P.O. Box 2905, Fort
Worth, TX 76113-2905; 817-885-5401. Field Offices are located in:
Albuquerque, NM; Dallas, TX; Houston, TX; Little Rock, AR; Lubbock, TX; New
Orleans, LA; Oklahoma City, OK; San Antonio, TX; Shreveport, LA; and Tulsa,
OK.
Region VII (Kansas City)
HUD Kansas City Regional Office, Professional Building, 1103 Grand Ave.,
Kansas City, MO 64106-2496; 816-374-6432. Field offices are located in:
Des Moines, IA; Omaha, NE; St. Louis, MO; Topeka, KS.
Region VIII (Denver)
HUD Denver Regional Office, Executive Tower Building, 1405 Curtis St.,
Denver, CO 80202-2349; 303-844-4513. Field offices are located in: Casper,
WY; Fargo, ND; Helena, MT; Salt Lake City, UT; and Sioux Falls, SD.
Region IX (San Francisco)
HUD San Francisco Regional Office, Phillip Burton Federal Building and U.S.
Courthouse, 450 Golden Gate Ave., P.O. Box 36003, San Francisco, CA
94102-3448; 415-556-4752. Field offices are located in: Fresno, CA;
Honolulu, HI; Las Vegas, NV; Los Angeles, CA; Phoenix, AZ; Reno, NV;
Sacramento, CA; San Diego, CA; Santa Ana, CA; and Tucson, AZ.
Indian Programs Office, One North First Street, Suite 400, Phoenix, AZ
85004-2360; 602-261-4156.
Region X (Seattle)
HUD Seattle Regional Office, Arcade Plaza Building, 1321 Second Ave.,
Seattle, WA 98101-2054; 206-442-5414. Field offices are located in:
Anchorage, AK; Boise, ID; Portland, OR; and Spokane, WA.
Other HUD Programs
HUD offers over 100 housing programs. Some may be useful to you. To find
out about all the programs offered, and what they do, call 202-708-1420 and
request Programs of HUD. This 119 page booklet will be sent to you free of
charge. HUD offers free counseling to HUD homebuyers, homeowners and
tenants. Contact your nearest HUD field office to find an approved housing
counseling agency.
* Homes: H.O.P.E. 3
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
451 7th St., S.W
Washington, DC 20410-7000 202-708-0324
The HUD Urban Homesteading Program has been replaced by the HOPE 3 Program
-- with a $95 million budget -- as of June 1991. It is designed to provide
homeownership for low income families and individuals. The funds will be
distributed to the 10 HUD regions and awarded to local governments and
non-profit organizations on a competitive bidding basis. It will generally
provide down payment assistance for groups to acquire or rehabilitate
affordable low income housing. After June or July, 1992, call your
regional HUD office to find out who has been awarded grants, and then
contact them directly to see what is available.
You qualify for housing help through HOPE 3 under the Low Income Family
Housing Act if you are a first time homebuyer and are below 80% of the
median income in your area. You must also meet the affordability criteria
-- which requires that the cost of principal interest, taxes and insurance
for the home comes to no more than 30% of your income. Since the program
is new, the quality of public dissemination of information about these
programs remains to be seen. These programs are instituted to help you, so
don't be afraid to be persistent in asking for information about what HOPE
3 programs are available in your area from the Community Planning and
Development Office at the Field or Regional HUD office nearest you.
To find out what the programs will provide and how to apply for a grant,
contact John Garrity, DHUD, Office of Urban Rehabilitation, Room 7185, 451
Seventh Street, SW, Washington, DC 20410-7000, 202-708-0324 or look up the
Monday, February 4, 1991 issue of the Federal Register, Part X, DHUD, 24
CFR Subtitle A called HOPE for Homeownership for Single Family Homes
Program; Notice of Program Guidelines.
* Homes: Veterans Administration
U.S. Veterans Administration
810 Vermont Ave., N.W.
Washington, DC
20420
202-233-4000
Contact the local Veterans Administration Office in your state, or a real
estate broker. Watch newspaper ads in local papers for listings of
foreclosed properties. The "For Sale" signs on VA foreclosed properties
are distinctive. The National Veterans Administration office in
Washington, DC is not directly involved in handling the sales; for any
inquiries you will be referred to a real estate broker or local VA office.
The Veterans Administration sells foreclosed properties through private
real estate brokers. Properties are frequently advertised in local
newspapers, giving information such as address, number of bedrooms and
bathrooms, particular defects in the property, and price. Almost any real
estate agent can show you the property. No broker has an exclusive listing
for any of these properties. Local VA offices are the best source of
information on the procedures involved in purchasing these properties.
Regional offices publish lists of foreclosed properties with descriptions
in multiple listing code and phone numbers to call about the property. In
some cases, they will also directly send you lists of properties currently
available in your area. These offices will mail out a list each time you
write in a request, but unless you are a broker, they will not send the
list for foreclosures to you on a monthly basis. You can, however, have
the agent of your choice put on the mailing list. Others will not mail
lists to you, but allow you to pick up the list from their office and/or
will refer you to a broker. In either case, you must go through an agent
to purchase the house, since they have the keys to the premises, and the
process is very much like a regular real estate transaction. The listing
has the price on it the VA wants. It will also state if the VA is willing
to entertain a lower price. Except, remember, once you have put a bid on a
house and won, there is no negotiating or turning back. Houses come "as
is" with no guarantees, so it is important to inspect them carefully. Some
are located in less than desirable neighborhoods, but there are bargains to
be had as well. For the most part VA financed homes are mainstream
suburban, not inner city. They are often found in neighborhoods located in
economically hard hit areas -- such as the Southwest. Prices may drop on
homes that are not sold in a certain period of time. VA financing is
possible, but you get a 10% discount for paying cash. Also, if you plan on
VA financing, in cases of a tie, the other bidder gets priority for cash
offers (pre-approved financing through a commercial lender.) You must state
at the time of the bid whether you intend to use VA financing or have found
your own.
There are two basic avenues to arrange financing. You can be pre-qualified
by lenders and then go shopping. More commonly, the real estate broker you
are working with will tell you what is available in the mortgage market.
The usual way it works is that you find a broker, find a house, bid on it,
wind the bid and then the broker helps you to find financing.
If you should win a bid on a VA foreclosed home but be unable to procure
financing, some regional offices will pu the home up for bid again. Others
hold backup offers and will contact the next highest bidder if the original
successful bidder is unable to complete the purchase. Most listings offer
to sell financing at the current rate of interest for GI loans, even if the
buyer is not a GI. A purchaser who is a GI can get these rates without
using his GI benefits. Call 202-233-6388, the Central Office, if you have
questions. They will direct you to the appropriate department of your
regional office. If you are a GI and wish to find out about a Certificate
of Eligibility, whereby you can purchase a home worth up to $184,000
without a down payment, call 202-208-1325 or your regional office. To
discusses VA loan qualifications generally, call 202-872-1151 or your
regional office.
Purchase is done through a sealed bidding process. Earnest money
requirements are published in the listing, usually ranging from $500 to
$1000 and are nonre-fundable if the bid is accepted. This is a salvage
program designed to recover what it can of the cost to the VA for
purchasing the property, within a reasonable amount of time after
foreclosure -- usually around 6 months.
* Miscellaneous Property: U.S. Customs Service
E.G.& G. Dynatrend
2300 Clarendon Blvd., Suite 705 703-351-7887
Arlington, VA 22201 703-351-7880
E.G.& G. Dynatrend, under contract with the U.S. Customs Service, auctions
forfeited and confiscated general merchandise, including vehicles, on a
nationwide basis. Items include everything from vessels--both pleasure and
commercial--to aircraft, machinery, clothes (in both commercial and
individual quantities), jewelry, household goods, precious stones, liquor,
furniture, high technology equipment, and infrequently, real estate.
Public auctions and sealed and open bid methods are all used. Items are
sold only by lot and number of items in a lot vary from one to many. You
must bid on the entire lot.
The U.S. Customs Public Auction Line is 703-351-7887. Call it to subscribe
to the mailing list of locations and dates of sales, to obtain general
information about the custom sales program, dates of sales in your region
or information about real estate sales. For $50 dollars per year you can
subscribe to a mailing list of items to be auctioned nationwide; or you may
subscribe to a list limited to one region of the country for $25. You will
then receive fliers with descriptions of items available in upcoming
auctions. Regions are divided as follows: General, Northeast sales;
Southeast Sales; Northwest sales; and Southwest sales. Send your name,
address, telephone number, and a money order to the above address. Allow
six to eight weeks for the first flier to arrive. The fliers will then
arrive three weeks prior to the viewing period and will tell you when and
where the items are available for inspection and details of auction
procedures. Catalogs are also available a week before the sale with
additional details. For sealed bids, a deposit in cashier's check for the
total bid must be submitted along with the bid. Make the cashier's check
payable to U.S. Customs Service/E.G.& G. Dynatrend, Agent. Indicate sale
number on cashier's check and outside on the envelope.
U.S. Customs auctions are held every nine weeks in the following eight
cities: Los Angeles, CA; Laredo, TX; Nogales, AZ; Miami, FL; Edinburg, TX;
Houston, TX; Chula Vista, CA (San Diego, CA area); Jersey City, NJ; El
Paso, TX. Other auctions are scheduled at different times at various other
cities also.
* Miscellaneous Property: U.S. Department of Defense
The Defense Reutilization Marketing Service
P.O. Box 1370 616-961-7331
Battle Creek, MI 49016-1370 1-800-222-DRMS
Imagine what kinds of items are used, then discarded, by a government
department as big as the Defense Department: literally everything from
recyclable scrap materials and weapons accessories, to airplanes, ships,
trains, and motor vehicles; to wood and metalworking machinery,
agricultural equipment, construction equipment, communications equipment
and medical, dental and veterinary supplies. Not to forget photographic
equipment, chemical products, office machines, food preparation and serving
equipment, musical instruments, textiles, furs, tents, flags, and sometimes
live animals such as goats and horses. No activated items with military
applications are included. Neither are real estate or confiscated items
such as sports cars or luxury goods.
Goods sold are either surplus or not usable by other government agencies.
First priority is given to designated groups which qualify for donations.
The rest is then put up for public sale. By contacting the Defense
Reutilization Marketing Service at the above address or telephone, you can
receive a booklet called How to Buy Surplus Personal Property which
explains what DOD has for sale and how to bid for it. The Defense
Department also lists notices of Sealed Bid property sales in the Commerce
Business Daily, available from the Superintendent of Documents, Government
Printing Office, Washington, DC 20402-9325; 202-783-3238.
Sales are conducted by regional Defense Reutilization and Marketing Region
(DRMR) sales offices which coordinate sales in their geographical area.
Listed below are addresses and telephone numbers of the regional offices,
which can direct you further as to exactly where items are physically sold.
Local sales are by auction, spot bid, or on a retail basis. Auctions are
held where there are relatively small quantities of a variety of items.
Spot bids are made through forms submitted in the course of a sale--usually
when the property is something with a high demand or interest. The retail
sales offer small quantities at fixed, market-level prices. There are 214
retail sales offices, located on military bases.
Large quantities of goods are usually sold by sealed bid, which you submit
by mail, along with a deposit, on a form you obtain in a catalog which
describes the items. (You receive the catalogs once you are on the mailing
list). Recyclable materials are sold through the Resource Recovery
Recycling Program or through the Hazardous Property Program. Call the
above listed number for further details. You can be put on a mailing list
to receive advance notice of DOD sales in your region, but if you don't
make any bids after two notifications it will probably be removed unless
you make an additional request to remain on the list. You can also be
placed on a National Bidders List for sales throughout the country. By
contacting the DOD Bidders Control Office, P.O. Box 1370, Battle Creek, MI
49016-1370, 616-961-7331, 961-7332, or 1-800-222-DRMS. People under age 18
and members of the U.S. Armed Forces, including civilian employees, are not
eligible to participate in these sales.
Following are the Defense Reutilization and Marketing sales offices:
DRMR: Columbus, P.O. Box 500, Blacklick, OH 43004-0500, 614-238-2114. This
region includes: MN, WI, MI, IA, NE, KS, MO, IL, IN, OH, WV, VA, DE, NJ,
PA, , MD, CT, NY, RI, MA, ME, VT, NH, and District of Columbia
DRMR: Memphis, 2163 Airways Blvd., Memphis, TN 38114-0716, 901-775-6417.
This region includes: TX, OK, AR, LA, MS, AL, TN, KY, GA, FL, SC, NC.
DRMR: Ogden, P.O. Box 53, Defense Depot Ogden, Ogden, UT 84407-5001,
801-399-7257. This region includes: ND, SD, MT, WY, ID, UT, CO, AZ, NM,
WA, OR, NV, CA.
You can also take advantage of DOD sales if you live outside the United
States. The DOD booklet, How to Buy Surplus Personal Property, lists
addresses for various regions in Europe and the Pacific.
* Miscellaneous Property: U.S. Postal Service
U.S. Postal Service
475 L'Enfant Plaza, S.W.
Washington, DC 20260-3100 202-268-2000
Vehicle Management Facility 202-268-2000
Contact the Dead Letter Branches listed below for undeliverable goods; or
your local Postmaster for Vehicle Maintenance Facilities and surplus
property auctions. To receive advance notice of the auctions you can write
to a Dead Letter Branch and request that your name be put on the auction
sales mailing list. To be on all of them, you must write to each one
separately. Usually 10 days before the auction, you will be notified by
postcard of the time, date and place. Viewing inspections are usually held
2 hours before the auction begins.
The Postal Service holds auctions of unclaimed merchandise which includes a
wide range of property -- from electronic and household items -- to
clothes, jewelry, linens, toys, all types of equipment, and lots of books.
Sales are handled through five dead letter branches throughout the country
listed below. However, any high value items such as art works, are sold at
the New York auction. Contact your local Postmaster to ask about their
auctions of surplus property and used vehicles. There are 225 post office
vehicle maintenance facilities throughout the country. Their addresses and
phone numbers are all listed at the back of the Zip Code Directory kept at
post offices. The used vehicle sales can be good bargains, since the
vehicles are somewhat fixed up, painted, and occasionally in good
condition. Some jeeps, for instance, may sell for between $1200 and $1500.
Recently a man bought 15 jeeps for $100 each at auction. Vehicles that do
not sell off the storage lot are auctioned. Sometimes cars such as Pintos
can be picked up for as little as $750. The sales conducted by the 225
Vehicle Maintenance Facilities around the country are usually fixed price
sales, but 5 or 6 times per year auctions have been held at larger cities.
The dead letter items are usually sold in lots of similar goods, with the
volume or quantity varying widely. Prices depend on what the goods are and
the number of people bidding at a particular auction. There may be a
minimum bid required, such as $20; and often cash is the only acceptable
payment. Bidders are responsible for removing the items purchased.
A flier for a Postal Service auction of unclaimed and damaged merchandise
in St. Paul, Minnesota advised that only those already on an established
check register may pay by check; otherwise, cash is required. It also
advised that potential bidders to bring their own containers -- boxes,
crates, and bags -- for packing. The Postal Service in San Francisco,
California, announced that books, jewelry, sound recordings, speakers, and
cabinets, as well as miscellaneous merchandise would be available.
Eastern Region
U.S. Postal Service Claims and Inquiry, Room 531 A, 2970 Market St.,
Philadelphia, PA 19104-9652; 215-895-8140 (auction information and number
to call to be notified by postcard of next upcoming auction). Includes
Pennsylvania, Southern New Jersey, Maryland, Delaware, Ohio, Kentucky, part
of Indiana, Virginia, West Virginia, North Carolina, and South Carolina.
Central Region
U.S. Postal Service Dead Letter Office, 180 E. Kellogg St., Room 932, St.
Paul, MN 55101-9511; 612-293-3089. Includes Minnesota, Michigan,
Wisconsin, North Dakota, South Dakota, Wyoming, Colorado, Nebraska, Iowa,
Indiana, and Illinois.
Northeast Region
U.S. Postal Service Dead Parcel Office, J.P. Farley Bldg., Room 209A, New
York, NY 10099-9543; 212-330-2931. Includes: New York, Massachusetts,
Puerto Rico, Connecticut, New Hampshire, New Jersey, and Rhode Island.
Southern Region
U.S. Postal Service Undeliverable Mail Branch, 730 Great Southwest Parkway,
Atlanta, GA 30336-9506; 404-344-1625. Includes: Georgia, Florida,
Louisiana, Tennessee, Arkansas, Mississippi, Oklahoma, Texas, and parts of
South Carolina.
Western Region
U.S. Postal Service Claims and Inquiries, 1300 Evans Ave., Room 293, San
Francisco, CA 94188-9998; 415-550-6500. Auctions are held at 228 Harrison
St., San Francisco, CA. Includes: Alaska, Oregon, Idaho, California,
Washington, Nevada, Utah, Arizona, New Mexico, part of Texas, and Hawaii.
* Miscellaneous Property: General Services
Administration Property
William Tesh, Chief of Sales Branch
U.S. General Services Administration
Property Management Division
Crystal Mall 4, Room 709
Washington, DC 20406 703-557-7785/0807
Contact your local GSA office listed below. The GSA disposes of surplus
property for most of the government agencies, and has items ranging from
vehicles and scrap metals, to office furniture, office and industrial
equipment, data processing equipment, boats, medical equipment, waste paper
and computers; as well as aircraft, railroad equipment, agricultural
equipment, textiles, food waste, photographic equipment, jewelry, watches,
and clothing.
Some regional offices have no mailing list. Instead, there is a number
they will give you to call that is a recorded message of all upcoming
events. It will give the time, date, and location of the auction and type,
such as warehouse, vehicles or office furniture. Other regions allow you
to have your name placed on a mailing list to receive advance notices of
auctions at no cost. Catalogs list the specific items and their condition.
Sales are conducted as regular auctions, spot auctions (where bids are
submitted on-the-spot in writing) and by sealed bid (written on a form and
mailed in). For auctions and spot bids, you will have two days prior to
the sale to view and inspect property, and one week prior for sealed bids.
For sealed bid items you receive a catalog, once your are on the mailing
list, describing the merchandise. If your region does not have a mailing
list, you may pick up catalogs at the office or the sale. Announcements
come out as property is accumulated, with March to October being the
busiest period. The highest bidder wins in all cases.
Prices may range from way below wholesale for some items to close-to-market
prices for others, especially automobiles and boats. Cars tend to be
common American-made brands, such as Tempos, Citations, and Reliances.
Prices for 4-6 year-old cars may range from around $1500 to $3000 depending
on the condition. Seized cars may be newer and of a foreign make. A
Mercedes-Benz was recently sold at a National Capitol Region auction.
Payment may be by cash, cashier's checks, money orders, traveler's checks,
government, or credit union checks; but any personal or business checks
must be accompanied by an Informal Bank Letter guaranteeing payment. Full
payment must be made by the following day, and bidders are responsible for
removal of all property. To bid in GSA auctions, you must register at the
site and obtain a bidder number. Once you are on the bidders mailing list,
you must bid at least once while receiving five mailings or your name will
be removed from the list. Then you must contact the appropriate office
again to continue receiving mailings.
Some listings for a GSA sale in Bismarck, North Dakota included the
following items: miscellaneous kitchen equipment, meat slicers, coffee
makers, cameras, film, binoculars, screens, paper, postage meter, nuts and
bolts, typewriters, lettering set, mailboxes, lamps, and a streetlight.
For information about GSA auctions in your area, contact one of the
regional offices listed below:
National Capitol Region (Washington DC and vicinity)
6808 Loisdale Rd., Building A, Springfield, VA 22150; 703-557-7785, or
703-557-7796, for a recording.
Region I (Boston)
GSA, Surplus Sales Branch, 10 Causeway St., 9th Floor, Boston, MA, 02222;
617-565-7326.
Region II (New York)
GSA Surplus Sales Branch, 26 Federal Plaza, Room 20-2016, New York, NY,
10278; 212-264-4824, or 212-264-4823, for a recording.
Region III (Philadelphia)
GSA Surplus Sales Branch, 9th and Market Sts., Philadelphia, Pennsylvania
19107; 215-597-5671 or 215-597-SALE for a recording. (This is NCR
Headquarters).
Region IV (Atlanta)
GSA Surplus Sales Branch, 75 Spring St. SW, Atlanta, Georgia 30303;
404-331-5177.
Region V (Chicago)
230 S. Dearborn St., Chicago, Illinois 60604 312-353-6061 or 312-353-0246
for a recorded announcement.
Region VI (Kansas)
GSA Surplus Sales Branch, 15 East Bannister Road, Kansas City, KS 64131;
913-236-2565.
Region VII (Ft. Worth)
GSA Surplus Sales Branch, 819 Taylor St., Ft. Worth, Texas 76102;
817-334-2351.
Region VIII (Denver)
GSA Surplus Sales Branch, Denver Federal Center Building 41, Denver,
Colorado 80225-0006; 303-236-7705.
Region IX (San Francisco)
GSA Surplus Sales Branch, 525 Market St., 32nd Floor, San Francisco,
California 94105; 415-944-5001. Northern area call 415-744-5120. Southern
area call 213-894-5162.
Region X (Washington)
GSA Surplus Sales Branch GSA Center, Auburn, Washington 98002;
206-931-7566.
* Miscellaneous Property: Internal Revenue Service (IRS)
IRS National Information Hotline 1-800-829-1040
This office appears to be understaffed. Overloads are automatically put on
busy. It is very difficult to get through. If you call before 3:30 at
202-566-3636, Donica Davis may be able to help you.
The hotline can tell you which local office to call. It will tell you to
consult your local newspaper, in classifieds, for a listing of IRS seized
property to be sold. The listing will give phone number and details. The
property sold by the IRS is seized from delinquent taxpayers rather than
being used or surplus government property. Many kinds of merchandise are
put up for auction, including real estate, vehicles, and office and
industrial equipment. Sales are by both sealed bids and public auction.
Regarding property sales, the IRS warns that land may still be redeemed by
the original owner up to 180 days AFTER you, the bidder, purchase it at an
auction; and therefore no deed is issued until this time period has
elapsed. Buildings on land being sold by the IRS are NOT open for
inspection by a potential buyer unless permission is granted by the
taxpayer/owner.
Payment may be by cash, certified check, cashier's check, or money order.
In some cases, full payment is required the day of the sale. Otherwise, a
20% downpayment (or $200, whichever is greater) is needed to hold the
property, with the balance due at a specified time from the date of the
sale, not to exceed one month.
* Miscellaneous Property: U.S. Marshals Service
U.S. Marshals Service
Seized Assets Division
Department of Justice
Constitution Ave. & 10th St., N.W.
Washington, DC 20530
Contact your local Sunday newspaper for auction notices in the legal
section, or the nearest U.S. Marshals Office under U.S. Department of
Justice. Usually the Marshals Office is located in the Federal Building of
a city. The U.S. Marshals Service or a contracted commercial sales or
auction service may handle disposal of the property. Sales are always
listed every other Wednesday in USA Today newspaper.
In 1991, the Drug Enforcement Agency managed 1.4 billion dollars worth of
property from convicted drug dealers. The U.S. Marshals Service, which
holds crime-related property accumulated in Federal drug-related and other
confiscations, auctions much of this off to the public through 94 offices
around the country. Items sold include everything from entire working
businesses, to cars, houses, copiers, jewelry, rare coin and stamp
collections, apartment complexes, and restaurants. The government is not
giving these properties away by any means, but bargains are possible as
well as opportunities to purchase some exotic goodies. Confiscated viable
businesses are managed by the Service until the time of the auction in
order to keep up or increase the businesses' value.
Auctions are not scheduled regularly, but occur when items accumulate.
Auctions may be conducted by private auctioneers or the Marshals Service
itself. No mailing list is kept to notify you individually, and there is
no national listing of items, since new properties are seized daily and
adjudication of drug-related cases may take years. Payment at these
auctions is by cash, certified check, or special arrangements when large
amounts of money are involved. One note, the Marshals Service checks out
people paying for large items with cash to make sure the government is not
re-selling things to drug dealers. The Marshals Service also auctions off
property seized by the Drug Enforcement Agency.
* Natural Resources Sales Assistance
Small Business Administration
409 Third Street, SW 1-800-827-5722
Washington, DC 20416 202-205-6600
The federal government sells surplus property and natural resources, such
as timber. SBA works with government agencies which are selling the
property and resources to assure that small businesses have an opportunity
to buy a fair share of them. Occasionally natural resources that the
federal government is releasing on the market are made available. Small
fuel companies and producers may get the option to buy their fair share of
federal government coal leases. The royalty oil program enables small and
independent refineries to buy oil at valuations set by the federal
government - which is in excess of spot market prices. Agricultural leases
may be had for land on which to graze cattle or grow crops. This SBA
program is designed to ensure that small businesses get their fair share of
real and personal federal property put on the market. Don't expect
bargains. Write for The U.S. Government Purchasing and Sales Directory at
the above address. This book tells you how to sell to the U.S. government,
how to be put on its bidder's list, and what agencies sell property. For
more information, contact Bill Berry at 202-205-6470. To find out what SBA
Natural Resources Sales Assistance programs are in your area, contact your
nearest SBA office. For information on other SBA services, call
1-800-827-5722 (recorded listing from which you can order brochures.)
* Real Estate: General Services Administration
Property Sales
General Services Administration 1-800-GSA-1313
Call this toll-free number for national listing of properties, and then
contact local GSA office for the area you are interested in. You can also
obtain the list by calling 202-501-0067. The phone number of the local GSA
office to contact will be provided on the list that is mailed to you free
of charge upon request.
* Real Estate: Small Business Administration (SBA)
U.S. Small Business Administration
Portfolio Management Division
409 Third Street, SW
Washington, DC 20416 202-205-6660
Recording from which to order brochures 1-800-827-5722
Contact your local SBA office located in 10 Regional Offices around the
country, or any of the 68 District Offices. SBA does not maintain a
mailing list. No district or regional SBA office is aware of what the
other offices are offering. The SBA auctions off properties of people who
have defaulted on home loan payments in SBA-sponsored programs. Listings
of auctions are printed in local newspapers, usually in the Sunday edition
in the classified section. Merchandise is identified as SBA property and
sold by brokers, none of whom have the exclusive listing, or by private
auctioneers. The auctioneers are chosen on a rotating basis. SBA attempts
to sell to the highest bidder, but may reject a winning bid if too low.
Sales are infrequent. Do not expect bargains. Items sold range from
office furniture and equipment to buildings or entire bakeries,
drycleaners, or other businesses. There may be parts or whole businesses
available. The auctioneer may have an entire auction of SBA items, or a
mixture of things from various sources. You may request to bid by sealed
bid if you desire; and a deposit is required. Payment is by cash or
certified check. If you are interested in certain categories of
merchandise, you might want to be placed on the mailing list of one or more
auctioneers who specialize in that particular type of item, such as farm
equipment, for example. Since the SBA is often the guarantor of bank
loans, SBA auctions are relatively infrequent and bargains are not easy to
find. SBA Regional Offices follow:
Dallas: 8625 King George Dr., Dallas, TX 75235-3391; 214-767-7643
Kansas City: 911 Walnut St., 13th Floor, Kansas City, MO 64106;
816-462-2989
Denver: 999 18th St.,Suite 701, Denver, CO 80202; 303-294-7001
San Francisco: 450 Golden Gate Ave., San Francisco, CA; 415-556-7487
Seattle: 2615 4th Ave.,Room 440, Seattle, WA 98121; 206-442-5676
Boston: 155 Federal Street, 9th Floor, Boston, MA 02110; 617-451-2047
New York: 26 Federal Plaza, Room 31-08, New York, NY 10278
King of Prussia: 475 Allendale Rd., Suite 201, King of Prussia, PA 19406;
215-962-3750
Atlanta: 1375 Peachtree St. N.E., 5th Floor, Atlanta, GA 30367-8102;
404-347-2797
Chicago: 230 Dearborn St., Room 510, Chicago, IL 60604-1593; 312-353-0359
* Ships: Maritime Administration
U.S. Department of Transportation
Office of Ship Operations
Maritime Administration
400 7th St., S.W.
Washington, DC 20590 202-366-5111
When the government decides that a merchant ship is no longer needed or
useable, it may put that ship up for sale by auction, through a sealed bid
procedure. A ten percent deposit is required. It is sold to the highest
bidder usually for its scrap value. Contact the above address to be put on
the auction mailing list.
* Timber Sales for Small Business
Small Business Administration
1441 L St NW
Washington, DC 20416 202-205-6470
The U.S. Government regularly sells timber from the federal forests managed
by the U.S. Forest Service, Department of Agriculture, and the Bureau of
Land Management, Department of Interior. On occasion, timber also is sold
from federally-owned forests which are under the supervision of the
Department of Defense, the Department of Energy, and the Tennessee Valley
Authority, and the Department of the Interior. The SBA and these agencies
work together to ensure full opportunity for concerns to bid on federal
timber sales. SBA and the sales agencies jointly set aside timber sales
for bidding by small concerns when it appears that, under open sales, small
business would not obtain a fair share at reasonable prices. Contact your
local SBA office for further specific information. It is listed in the
blue pages of the telephone directory. General information, if needed, is
available from Bill Berry at 202-205-6470.
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