What is the initial bid at the foreclosure auction?

Asked by Paul Brams, Denver, CO Wed May 27, 2009

I looked at the foreclosure auction results and saw that some properties sold for almost a half of the outstanding mortgage balance. Is that possible and how?

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5
Daniel Herron, Agent, Lakewood, CO
Wed May 27, 2009
BEST ANSWER
Yes its absolutely possible, but Lenders still have a reserve set so do not have to sell to the highest bidder if they do not meet their reserve price.

The way it works is that the Auctioneer takes a starting number that the chose from some formula. Then they start the auction and if you win the bid without meeting the reserve they will tell you that you have won subject too Lender agreeing to the offer. If at anytime the reserve is met the property can be considered sold.

If you would like to go to an auction or talk more about it let me know. I have some experience with the auction process, had a client recently purchase and get a great deal through auction.

Daniel Herron
720-323-9178 cell
danielherron@kw.com
1 vote
Frank Becerra, Agent, Las Vegas, NV
Wed May 27, 2009
Las Vegas properties at this point are selling for as liitle as 30% of what the original loan was for. The only thing that matters is market value once the bank owns it and how close they can get to it.
I wish you luck.
Web Reference:  http://www.myhomeinvegas.com
2 votes
Ethan Besser, Agent, Englewood, CO
Wed Jun 3, 2009
Hi Paul,

To see other available Denver Metro foreclosure properties, you can go to my website:

http://www.denvercoloradorealestatenow.com/page/94496/Forecl…

Thanks,

Ethan
1 vote
Ethan Besser, Agent, Englewood, CO
Wed May 27, 2009
Hi Paul,

The reason that a property can go for less than the mortgage amount is common. After that property goes to foreclosure, the bank only expects to make a portion of the actual mortgage amount back (in the foreclosure sale.) It can be as little as half, and sometimes even less, depending on the property.

Often the bank will put those properties back on the market- and those properties are called Bank Owned Properties or (REO properties). If you want a list of Bank Owned properties, contact me at:

ethan@denvercoloradorealestatenow.com

Thanks,

Ethan Besser
303-856-8980
1 vote
Kathy Knapp, Agent, Aurora, CO
Wed May 27, 2009
Foreclosed properties are owned by the lender -
0 votes
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