HELP, Foreclosure & REO
I know that a Lender in a foreclosure can not make money at the foreclosure sale. However, once the lender claims the property as an REO (if no one else bids on the property) can the lender then raise the price of the house to the FMV. For EXAMPLE: There is a house that has a mortgage of $125,000 that is in foreclosure, the property has a FMV of $300,000. If no one else bids on this property at the foreclosure auction and the property becomes an REO can the lender then list it with a real estate agency for $280,000?
YES, They can.
Lori
[addsig]
And will sometimes list at FMV, even tho the house will need repairs.