Lender takes possession question ???

[Brenda Sacchetto]

I have a fairly dumb question. When a house has been foreclosed and it say's,

"The lender has taken ownership of this property through a foreclosure auction for the amount of .." and the original loan on the house was more than what was acquired at the foreclosure auction, does that mean an independent investor purchased the home at the auction? Because if the loan went back to the bank it would be for the original purchase price, correct? and it would specify that it went back to the original lender....??

I know-it's dumb..but I really am confused on this

[Mary B.]

It means the lender owns the house/property now.

i.e. the homeowner owed $300,000 total (including attorney fees, late charges, mortgage p&I)

the foreclosure auction got $101,000 highest bid

the bank won't accept the $101K bid so they took the house back as being the 1st lienholders

P.S. Its not a dumb question at all. You're new still learning but didn't know, that's that.

Kudos,
Mary