There is no particular guideline they use to determine the asking price. It may vary. Sometimes they have a BPO (Broker Professional Opinion) to determine the Fair Market Value and use that number to determine the asking price. Other times they have a full appraisal done. They may simply use the total amount owed on a first mortgage, or simply price it similar to other homes on the market that are comparable.
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County records is the leading source for foreclosures. When a home is in default a notice is filed. The default can be a first lien holder, a second lien holder, association, property taxes, etc. If they are given the right to foreclose in the given state.
So if you read an article, blog, etc, refer to the source for of the information. Other sources, on the web may not be as reliable as your county records.
> rely on the BPO (Broker Professional Opinion) for current FMV (Fair Market Value)
> rely on a full appraisal
> they may use total amount owed on a first mortgage
> they may just choose an arbitrary amount
For the most part I have never seen any backup data to support the total listed on the MLS offering.
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