Home sold at foreclosure auction for less than Final Judgement

2 Replies

Hi BiggerPockets Community!

I'm a veteran who recently graduated college and in the market for my first home. I'm currently researching and exploring all avenues.

I was looking at past foreclosure auctions in Florida and found that some homes sold for less than the final judgement amount to 3rd party bidders. I was under the impression that the Final Judgement amount would be the starting bid because it ensures all the debt associated with the property title is paid off. 

Is this not the case? If not, what determines the starting bid? And, what happens with the remaining debt listed in the Final Judgement?

Thank you for your help!


Hi Tony - Thank you for your service. Properties can sell for less than what is owed. Banks are not in the business of owning homes and often just want them off the books - so they are sometimes sold for much less than what is owed. 

@Antonio Rubio

The foreclosing entity sets the bid price. As a note investor I have several foreclosure auctions each year and will bid a value that I am happy with as I would rather sell it at auction than deal with carrying costs then realtor fees etc. an example is I recently had a condo in Florida that payoff was $70k and condo was worth $50k. I sold it at auction for $40k and I was thrilled to get $40k for it. Larger institutions do not think this way but depending on who holds the note assets may sell for less than what is owed

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