First time home buying + Foreclosure + Ohio

[Chandu Reddy]

Hello everyone,

I'm new to this forums and looks like there are tons of real estate gurus here. I'm planning to buy my first house and that too in a sheriff sale.

The house I'm looking at is built and sold in 2006 and is pretty new. There is only one lien (did title search) on the property. Never got an opportunity to check any owed taxes (verified that 2008 taxes were paid). Similar houses (same builder and same year built and similar floor plan and square footage and even same community - one house is adjoining) are for sale at around 200K.

And here's my question:

- The initial loan in 2006 when the house was purchased was for around 205K and the outstanding balance now is around 200K. The appraisal of the property is set at 206K. So there's no equity built and the remaining loan amount is close of the value of the house. At the auction, the starting bid is set at 138K. In this kind of the scenario will I be able to win the bid if my maximum is set at $145K. I read that even bank will be present to bid on the property. The reason why I'm asking this question is, there's plenty of work that needs to be done before the auction and I've to arrange finances for the deposit and downpayment. My maximum limit is set at $145K for this property. Will the bank let go the property for 138K(+10K if needed) when the remaining is 200K.

Thanks,
Chandu

P.S: The house looks close to perfect from outside and I'm prepared for around 10K in repairs if need be.