| Name:
Terry
Title of Question:
Bank as high bidder at public sale |
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Question: Why does a bank or mortgage company usually become the high bidder at a public foreclosure sale? If the house goes back to bank, why does the bank bid on house at public auction? |
Post Your Answer To The Question Above:
Name:
Damien Barber
| Date: October 17, 2008, 7:32 am
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| Answer:
I believe this is because the property must be sold for a minimum amount to cover the mortgage, back taxes, etc and if the highest bid is not enough to cover all that then the bank must outbid. Usually this problem is averted by stating the bidding above all the costs involved though. |
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