Newbie Question
examople: house to be auctioned has a 50,00 mtg - that is the opening bid? and you bid over that... highest bidder get's the deal? - or if no one bids over that, that is how it becomes a REO ? a REO is a property that no one wanted to bid on at auction?
and if their are liens in addition to the mtg. the opening bid is the sum of mtg. and liens - and if no one bids over this amount it is then a REO and their asking price will be the sum of thei mtg. and the
liens?
Not real sure of the question being asked, but I'll try to throw out a few answers anyway.
The foreclosing lienholder will usually set the minimum bid amount by placing the first bid on the property. Usually that is the total of the loan and all fees, etc. If the lienholder is the highest bidder (ie no one else bid), then yes, it then becomes a REO.
The starting bid is usually made by the foreclosing lienholder. They do not include any other liens in their bid. It is up to the other lienholders to protect their position, if they choose, by bidding higher.
If the property becomes a REO, the bank is now the owner and like any other owner, can price it at whatever price they wish. The past loan may affect their decision but really doesn't have anymore to do with the price.
Roger