Plaintiff max bid question

[Yoni R.]

On the auctions where it says “plaintiffs max bid”. Does this mean that the plaintiff will for sure bid up to this amount or does it mean that the plaintiff may bid less than this but for sure will not bid higher?

[Yoni R.]

Thanks. If the plaintiff is required to bid to their max bid then something doesn’t make sense to me.

Maybe you can explain to me why a plaintiff would put their max bid at for example 200k when the house is only worth 125k.

I understand that the default on the mortgage is for 200k that they owe the plaintiff (bank) but why would the bank want a house that is only worth 125k and not put a max bid at lets say 125k or a little less.

If the bank keeps the house and sells it themselves they will only be able to sell it at 125k anyway. So I am not quite understanding why they would put their max bid at 200k for a 125k house. They are almost guaranteeing that they will have to take the house to themselves and that it will not sell at auction.