Bank Owned House Listed for $20,000?

[Chris Heeren]

This is the novice investor in me but why would a bank give an initial offer of $80,000+ on a house during the court house steps auction and then turn around to sell it on the MLS for $20,000 a month later? Is this common for banks to sell houses lower than the court house auction offer? Are there flags that may cause Banks to sell immediately?

[Karen Rittenhouse]

Hi Chris:

What I've personally seen is the bank making an offer at the courthouse steps for the amount they were still owed on the property. It is really more about what the loan amount was at the time of foreclosure than the property value.

MLS listing is often different, sometimes for more, sometimes for less, based more on what they can get as advised by agents, inspections, and perhaps even appraisal.

Let us know what you find out on this one.