REO Pricing

[Rob Forest]

Hello,

I'm new at thins and looking at an REO to buy and hold. I have my eye on a particular property that did not sell at auction and really have no idea what a reasonable listing and accepted offer price will be once it's on the MLS.

The fair market value is about $180k, it got no bids at auction at $140k. It's underwater, and total outstanding debt is $300k.

A few things I'm wondering:

Was the $140k starting bid at auction just a teaser rate and the reserve would have been much higher?

Am I dreaming if I think it didn't sell at auction for $140 so they would accept lower when it's listed?

Thanks!