While rare, from time to time a bidder will not come forward and complete a transaction. We make it very clear that when a bidder places a bid, they are entering into a binding, legal agreement. We also make it very clear that we have a Zero Tolerance Policy for deadbeat bidders. Since we charge their credit card (which is required prior to bidding) the 8% buyer's final sale fee, they already have money on the table and this will not be returned if they default. They will also be banned from ever using Municibid again in the future, and we have technology in place to make sure they do not try to register under a different alias.
If the winning bidder defaults, you may pursue legal action against the bidder and contact the second or third highest bidders to see if they are interested, or re-list the item for auction. Please know this might occur in 1 out of every 100 or more auctions and we are doing everything we can to ensure this does not occur at all. In some cases we may also pursue legal action against the defaulting bidder.