Who Will Bid...what Is The Norm In Your Experience?
A home will be up for auction soon. As an example, here are some numbers and info.
In OH the bidding starts at 2/3 the appraised value, must have cashiers check for 10% of that value at the auction.
Home appraised at $200k.
Bidding will start at $133k.
There are three mortgages (in order of priority)
$115k - To bank
$15k - To an individual
$50k - To a different individual
Therefore, the bank will certainly bid the minimum to protect themselves ($115k), which will also pay off the second mortgagee ($15k).
In your experience, will the third mortgagee (an individual who may or may not be sophisticated in the area of foreclosures) bid on the property? I would think if they are on the ball he/she would try to buy the home and then sell it, but who knows if they have the ability or knowledge to do so.
What are your thoughts, has anyone seen this situation? If so, what happened?
Thank you JohnMichael.
I feel pretty good, because I have already obtained all the information you mentioned in your post, and have viewed the entire court file, etc.
I really think the only big question here is whether the others will protect thier interest (the 1st mortgagee is foreclosing). I know this can never be said for sure, but just your opinion is valuable. I like to know how things "usually go", so I can prepare for how they might go.
Thank you again.
GeneralSnafu: Thank you also. I tried replying, but my cpu may not have been in the mood to work with me on that.[ Edited by GoldenBear on Date 05/01/2005 ]