Judgement Amount Vs. Bid Amount
Hi:
I attended my first sheriff's sale today.
On one sale, the bank bid lower than the amount of the judgment + accrued interest + legal expenses, etc. The bid was also lower than the appraised value of the house.
After some checking, I found out the opening bid by the bank was simply the amount of principal left on the mortgage when the defendant began defaulting on the loan.
Only one other person bid (besides the bank) at $1 over the opening bid.
My question:
Does this person have to pay the amount of the full judgement or just the amount she bid? (There were no other liens, etc.)
Thanks.
The winner simply pays what he/she bids! In all reality it doesn't matter the judgment amount. I've seen judgments of over a million dollars on properties not valued at more than $200k!
Before the sale the bank takes a look at the exterior bpo's and other information they have at their disposal and try to come up with a number at which they are willing to let the property go at. In this cause they thought that if they could get rid of the property at the original principal, it would be worth it to simply cut their losses and move on.
This is where a short sale can come on. By giving the mortgagee ALL the facts you can convince them to let the property go even cheaper because they are able to make a more informed decision.
GOOD LUCK
they just pay the bid price. all else is "forgivien"........kenmax