Do Auctions have a Reserve Price?

Question

When they start at $100 i assume the bids bump it up to a bigger number - and the trustee might not like the highest number - and cancel the auction - correct?

But then I see some auctions open at a big number - 250K. Is this the total of all loans and liens? If I make an offer of 250K and there's no better offer - does the bank typically accept it? Is there again a bid price above 250K?

If theres a bid price above the big open price - whats the point of putting something like 250 at open. Why not put the Reserve at open?

Wayne Brooks · Answer

You Really need to sit down with a local real estate attorney, unless you want to be one of those people that buys a $300k house for $200k at an hoa foreclosure sale,thinking you have a good deal.......then find out the $300k mortgage stays with the property and they are now foreclosing on you, flushing your $200k down the toilet.

Joel Owens · Answer

Not all auctions are the same. You have to read the whole disclosure and process for that particular property at the auction as to whether there is a reserve etc.

It's all in the details.

James W. · Answer

There's an attorney name on the auction too. I think calling him is the start.

James W. · Answer

Can a house land in sherrif sale for not paying management dues and a years taxes? The judgement is only 15K - that includes managment fee and 1 year taxes. The house is probably 300K.

Are they saying starting from 15 whoever bids highest gets the house? That might stop at 200K!

And the house will be sold because someone did not pay 15K in condo fees?

James W. · Answer

In my county the public sheriff listing says

Judgement Amt*: 209,100

...

*Excludes Judgment Interest and Sheriff Fees.

What does this mean?