Courthouse Auction. Property worth much less than the debt.

[William Coet]

I'm looking at a property on Auction . com that has twice as much debt as it is worth (I am very familiar with the market where it is located).  The property is going to be auctioned off at the county courthouse.  Will the bank accept bids lower than the debt on the property?  There is no credit bid (upset bid) stated on the auction webpage

Thank you!

[Ron S.]

Originally posted by @William Coet:

I'm looking at a property on Auction . com that has twice as much debt as it is worth (I am very familiar with the market where it is located).  The property is going to be auctioned off at the county courthouse.  Will the bank accept bids lower than the debt on the property?  There is no credit bid (upset bid) stated on the auction webpage

Thank you!

When I hold a foreclosure sale, I usually try to do my credit bid at about 90% of FMV, regardless of what the balance of the loan is. My objective is to not take the property back into REO and instead, entice 3rd party bidders. That's just my objective so, other asset managers may have different formulas or strategies.