hi everyone, I'm brand new here and have a question about a certain property. I hope this is allowed. The property in question has a $30,000 opening bid, but $127,000 is owed on the mortgage (which is probably about what it's worth). I know that there is also less than $10,000 in back taxes as well. Would the bank really start this low just to get it off their hands? Here is a link to the property I question. https://www.auction.com/washington/residential-auction-asset/1858576-17877-10220-foss-river-place-northeast-skykomish-wa-98288-e_3250
Search "Auction.com" on here and it will hopefully give you some more answers on how that site works.
Taht bid is the teaser "starting" bid, it is Not an acceptable bid. There will be an undisclosed reserve price, much closer to FMV.
We buy houses on Auction.com every couple of months and there is always a reserve price that needs to be met. The "winning" bid will go to the bank and if it does not meet the reserve they will counter with a much higher one. You then have the choice to accept the counter or let it go and get your money back.
If you track a certain property you can usually see it go through a few cycles and get a good idea what the bank is looking for. Some of the other auction sites will say whether the reserve has been met and sometimes you have to bid against yourself to meet the reserve since the banks counter can sometimes be higher than the minimum reserve.
Just like ebay, most bids stay low until the last half a day or so and then they start taking off. It is not uncommon to see properties go up tens or hundreds of thousands of dollars in the last few hours depending on how many people are bidding and which ones have "automatic" bid raises in place.
The opening bid is to draw in interest and the price goes up from there. Continue participating or visiting auctions to get a feel for how it goes!
Good Luck Auction.com has all the answers to your questions and they are pretty strict ask the Realtor or get a Realtor who know how Auction.com works.
Hope you do well.
You are right. That sounds very strange. It is a very deep discount. If you are interested in it I would keep digging. And if you can, make an offer if its a good deal. You may end up with a property with plenty of equity