Premium bidding
An auction format where, once the interest rate bids down to the statutory floor (often 0%), competition shifts to a cash premium paid on top of the lien. New Jersey uses this after its 18% rate floors out.
See how this plays out in a specific state: browse all 50 states, or check the full glossary for related terms.
General definition — exact terminology and mechanics vary by state and county. Always confirm against the specific county's own auction notice before bidding.