Auction.com foreclosure sale - Estimated debt amount
Hello,
I may be participating in a physical Auction.com foreclosure sale for the first time, the one they do on the courthouse steps, but because it's in a remote area, I want to make sure that I'm not driving there for nothing.
My question is: what does the Estimated Debt Amount that Auction.com lists for the property mean to me, if the opening bid is much lower? Say the Estimated Debt Amount is $300k but the estimated opening bid is $100k, and the property value is somewhere around $200k. Does the $300k serve as a reserve, and if not, why even mention it?
My understanding was always that properties have to sell for at least the amount owed to the bank, and if that amount is higher than market value, the property will not sell at the auction, the bank will assume it, and it will end up in REO at a lower price. Is my understanding not correct?
Jean