How to Buy Government Surplus or Seized Property

In September of 2006 the American federal government launched its own property sales auction-style selling site. No kidding, you can actually purchase personal and commercial property seized by the government in an auction style bidding format similar to eBay. This project, GovSales is a product of the Federal Asset Sales Initiative managed by the General Services Administration (GSA) a GovSales partner. According to GovSales, "its mission is to create a secure, efficient, and effective online e-marketplace that will serve as a single-point for the public to find and buy federal assets."

Items up for sale are "billions of dollars" of surplus, seized, and forfeited assets. What does this mean for the average American citizen like you and me? Well, we can purchase discounted property from the government, and yes, in turn, put more money in their pockets. Why is the federal government selling seized and second hand property? The GovSales website issues the following statement regarding government property: "As a part of the normal process of performing its business, the federal government requires common items such as computers, furniture, buildings, etc., to complete its mission. Once these items have served their useful life to the government, they may still be of use to private citizens." Well, isn't that special? Government castoffs may still be deemed good enough for the average citizen.

In addition to the government property castoffs you can find other personal property items such as jewelry, cars, and boats that were seized from individuals by the government for one reason or another. With a quick search of the site today, I found a Louis Vuitton leather handbag that started at $75 and is currently bid to $270. Other sought after items include electronics like Blackberry cell phones, laptops, and amazingly enough, a 17-inch Sony color television circa 1990 with a fantastic starting price of $5.00! Like that old model television, or the 1985 Cessna 210 Centurion aircraft (scrap use only) for which they are asking $1,000, I think these are a few items the government may find tough getting our hard-earned cash for. However, there is a link to find foreclosed homes offered from U.S. Departments of Housing and Urban Development (HUD), Agriculture (USDA/Rural Development), and Veterans Affairs (VA). This real estate database is searchable by city and state, and at the time I wrote this article there are 41 homes offered in the city of Las Vegas alone.

Think you will find your next dream home? Probably not, but what you might find is a good deal on a piece of property once owned by a poor soul who couldn't afford to keep it. What kind of condition are these items in? Of all the auctions I browsed, every one of them had a statement at the end stating sold as is, without warranty, or guarantee to the authenticity of the item. Still interested in buying? Let us take a look at the purchasing procedures.

All of the items sold through the GovSales website are sold by an authorized sales center. You are required to register with each sales center before purchasing an item from them. To register you need your social security number and a credit card. Why your social security number? According to the Debt Collection Improvement Act of 1996, a Tax Identification Number (TIN), i.e., your social security number "must be provided by anyone conducting business with the federal government, from which a debt to the government may arise." So basically, before purchasing from the government they want to make sure they know how to find you, should you default on your purchase. What other organizations make it mandatory to provide your social security number to them before shopping? I've not run across one. Know thy customer I suppose.

After registering, bidding, and successfully winning the item, you are required to pay the seller within two business days from the time and date of an emailed notification for winning the sale, unless otherwise specified. GovSales states "at this time, sales agencies do not provide shipping, although special arrangements may be made on a case-by-case basis," and property must be removed within 10 business days from the sale date.

Here is where the government gets uncharacteristically accommodating and innovative. Although some payment methods may be restricted, generally, GovSales accepts nine different types of payments including: "cash or cash equivalent, U.S. currency (no greater than $10,000), bank cashier's check, credit union cashier's check issued by a federal or state-chartered credit union, U.S. Postal Service or commercial money order, Traveler's checks, properly endorsed United States federal, state, or local government checks, personal or company checks accompanied by a bank letter of guarantee," and of course, the American standby, credit cards.

Here is a point to ponder. Since the U.S. national debt is at $12.6 trillion, with credit card debt totaling $861.8 billion, (according to http://www.usdebtclock.org/) should the U.S. government be offering citizens another way to charge purchases on their credit cards? Why are these sales not cash or cash equivalent checks only? I find it disconcerting that we now have a government advocated and created website condoning more credit purchases.

I tried to get information regarding the profits made from the GovSales website from the usa.gov live chat window today, but from my chat representative received the answer: "I have not located that information" and she supplied me with a link to the GSA website which does not have any profit data listed. Is the government making money on property seized from U.S. citizens, or from their own items that have served their useful life? I cannot be sure. Is our government providing an avenue for its very own citizens who are already trillions of dollars in debt to charge a pair of diamond earrings on their already used and abused credit cards? Of that, I am certain.