Nahnah, Home Seller in 39440

Why isn't a foreclosure price significantly lower than the list price?

Asked by Nahnah, 39440 Thu Aug 27, 2009

If one wanted to bid would he need to be present, or could a realtor speak for him? Could he bid a good bit lower than the estimated bid price?

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This question is about this property: http://www.trulia.com/foreclosure/2006950709--Pitt-St-Mount-…

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Nahnah,

I go to the auction down on the steps of the courthouse all the time. It is not unusual for the bank's actual maximum bid on the day of the auction to be lower that their bid published on the master's website. While it is not always clear what factors affect their decision to lower their maximum bid, but a quick guess would be the condition of the home, the market conditions in the property's neighborhood, or the experience of the decision maker handling the file for the bank.

But needless to say, I've seen some real steals on homes at the courthouse. I have done a bit of research into the property that you are interested in. I have found some interesting information. Please call me if you are interested in what I know about the property and how I can help you. My contact information is in my Trulia profile.

Best Regards, Dan Mengedoht
0 votes Thank Flag Link Fri Aug 28, 2009
The bank sets the bidding to what is owed on the property. The bank will bid on the value of the outstanding mortgage balance to protect their interest. If no one bids higher, then the bank buys it back at the mortgage value. The bank will then put the property back on the market as a bank owned property (the term that bank uses is REO). Sometimes they put on the market at a much lower price other times they will price to market conditions. Each REO is different.
0 votes Thank Flag Link Fri Aug 28, 2009
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