foreclosure Sale /judgement amount
When foreclosure sale takes place and the judgement by 1st morgagee is $125K
Does this mean that the bank will bid at least that much so they can resell at $175K [These are probable amounts]
I've also heard they may not even be present if they are not a local bank?
So If I want to bid Will I be corrrect to assume that I will have to bid at least $125K to get the house?
Thanks, L
The judgement is how much the borrower owes the lender. With a judicial foreclosure, a court date is set where the borrower and the lender's attorney meet to discuss how the borrower is going to pay the lender. If the borrower can't pay the lender or doesn't show up, then a sale date is set. At the auction, the lender's attorney will announce the opening bid for the property.
Usually, the lender's attorney will be at the auction to start the opening bid and possibly bid higher to try to get as much for the lender as possible. If the opening bid is $125K, then you have to bid more than the $125K (i.e. $1).
Tanya
Sometimes the banks don't get the actual payoff balance do to a # of reasons...in which case the lender files a deficiency judgement against the prior owners to try and get whatever they don't get from the sale to make the payoff.
I believe there's a starting bid that the bank has pre-approved through the banks attorney. The bank doesn't want the property, they want to get paid, they're not in the biz. of buying and selling houses....
If the prop. doesn't sell then the bank will get it back as an REO and probably just give it to a Realtor to get rid of.
This is my understanding.
Hope this helps
Clif [ Edited by pbodys on Date 04/30/2003 ]