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  • Elizabeth Meyer July 13, 2011 at 11:46am
    Here in AZ the banks almost never set the bid for what is actually owed on the loan.  There are a couple trustees that we just know will set the opening bid too high and no one ever buys their homes at the courthouse steps, but most of the lenders set a lower opening bid based upon BPOs or appraisals and then people either bid on the home at the courthouse or the bank just takes it back and then sells it as an REO.
  • Jeff Payne July 13, 2011 at 9:48am

    Could be, but they have to make sure that they bid enough to get the house back, otherwise there would be people at the courthouse buying them for much less and the banks would lose even more. 
    Donna Quanrud said:
    It hasn't always been the case here.  In MN the home owner can redeem the property for the value of the winning bid at the sale so the lenders use to bid full amount of mortgage.  That seemed to have changed in the last year. 
  • Donna Quanrud July 13, 2011 at 9:04am
    It hasn't always been the case here.  In MN the home owner can redeem the property for the value of the winning bid at the sale so the lenders use to bid full amount of mortgage.  That seemed to have changed in the last year. 
  • Jeff Payne July 13, 2011 at 8:59am
    Smitty is correct, they have a maximum amount that they will go to in order to protect their interests. 

    Smitty said:

    Lenders always bid less than what is owed in my area.  You can easily be bidding next to the bank.  They likely have a minimum NET amount they will accept based on BPO's/Appraisals set for by the investor backing the note. 

     

    To be honest, I've never seen a lender bid what's owed on the mortgage. 

  • Smitty July 13, 2011 at 7:46am

    Lenders always bid less than what is owed in my area.  You can easily be bidding next to the bank.  They likely have a minimum NET amount they will accept based on BPO's/Appraisals set for by the investor backing the note. 

     

    To be honest, I've never seen a lender bid what's owed on the mortgage. 

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