The starting bid is usually based on what the lender is owed on the property. Do your homework and get some comparable information from local agents on similar homes prior to making a bid. You should also view the property, do professional inspections, and possibly get a title search, and discuss with attorney prior to making a bid as you may become an owner of a property with issues that were not known or disclosed to you before your bid. Like most auction situations after you buy sometimes you feel you did not get what you thought you were bidding on or in the condition you expected.
All the best,
If your going to bid make sure you understand what your bidding on. Check the title and make sure you are buying the property and not a lien position after the first mortgage. Also make sure you have certified funds, because you will need at least 10% of bid (typically). Get an expert in Georgia to tell you what is needed in your state and city.
First Weber Group
Certified Distressed Property Expert
You know the saying if it sounds too good to be true it usually is.
Have you been to see the house or are you buying an unseen property. I myself would be very skeptical buying off the court house stairs something I have not seen or been able to check out for myself unless you are an investor ready to flip it.
There are lots of foreclosed properties out there if you are looking for a deal that you could go look at it and have inspected before purchasing. At least you would know for sure what you were getting into.
Let me know if I can be of assistance to you.