Let me add on to Lori's answer: Lenders will bid up to the amount they are owed on the mortgage + late charges+accrued interest + attorney fees + court costs, etc. Excess funds are then distributed to junior liens second then the former homeowner.
Most often the bank will submit a written bid and that is their only bid. It usually starts out the bidding and others can join in and bid more than that amount.
Yes, they can bid and they do bid.
Lori
[addsig]
Let me add on to Lori's answer: Lenders will bid up to the amount they are owed on the mortgage + late charges+accrued interest + attorney fees + court costs, etc. Excess funds are then distributed to junior liens second then the former homeowner.
Most often the bank will submit a written bid and that is their only bid. It usually starts out the bidding and others can join in and bid more than that amount.