Sheriff Sale- 2 Bank Involved ???
Hi,
Looking at past Sheriff Sales in my area to see who is buying. I found one property with this information.
1) Plantiff was Bank ( I'll just use initials)
CB
2) The buyer was another Bank ( I'll just use initials) NB&T
The 2/3 price was $40,000 and appraised at $60,000.
The buyer (Bank .. NB&T) purchased the property at the sheriff sale for $51,000.
I thought banks were not in business to have Real Estate. Why would another Bank buy the property? I understand if the bank is the Plantiff, but this was a different bank. I am really confused on this. Thank in advance for any answers.
The second bank may have had a junior mortgage on the property, and in some states must bid at sale in order to protect their lien. If they were owed $ and did not bid that lien could be voided.
Now the 2nd bank will try to sell the property for more than 60k. The way some investment property is selling for, they might just get more than 60k.
It is amazing how many people are over bidding on homes...