what happens when no one buys at auction??

[Philip Williams]

Hi all was looking for a little help, I go to real estate auctions daily and often times properties are overpriced and no one bids. What happens next, do the bank just shrug and list with a realtor, put it up again months later etc? Can you put in a back up bid with the law firm representing the banks? Any and all help would be greatly appreciated!

[Account Closed]

Philip Williams

Hi Phillip,

My first property was a foreclosure auction and the entire lead up to the auction I had the same question that you have. What if the bank is the high bidder?

It was a few years ago but I remember doing a little research on the subject and one of the things I learned was that sometimes banks will simply keep the properties on their balance sheet because it’s still a hard asset - as opposed to perhaps having a loss at auction or something. I considered this as a reason why so many foreclosures dragged following 2008.

Not necessarily a thorough answer but food for thought

Jon