I am going to an auction in a couple of weekends. The house I'm interested in is in my target area. It's list is $249K and the starting bid is $89K. So I'm assuming that $89K is the balance of what was owed the bank on this mortgage. Is that a correct assumption?
I'm also wondering...if I correctly understood everything I've read so far, the succession goes distressed owner, pre-foreclosure, short sale, foreclosure, auction, REO (if the house doesn't sell at auction). Is that correct? Because if it is, I was further wondering if it's not just better to wait to see if the bank walks away from the auction with the house and adds it to their REO inventory. If $89K is their bottom line at the auction, but they can't unload it, might they then not be willing to negotiate on the price if they have to take it back? And if that is the case, then is it not better to just skip foreclosure auctions in general (unless there is a real killer deal; some of the houses on the list have a starting bid of $1,000 with lists of over $100K), deal with REOs only and be able to negotiate the price with the lender?
Thanks for any and all input.
And, hoping not to offend anyone (i.e., Lions fans), but "GO PACKERS"!!!!
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