Foreclosure auctions - Plaintiff bidding

[David Sabine]

My question is, why do, at least from what I’ve seen here in Ohio, Hamilton County, do most of the foreclosure sales end up with the plaintiff purchasing at what is owed?

What am I missing? Please point out what I have wrong because it seems like I have to have SOMETHING WRONG! Here is the scenario as I understand/see it.

1. Jane Seller has a house and puts on the market for $100k
2. John investor get financed by his bank and purchases the house with 20% down and $80 mortgage.
3. John Investor defaults on loan 5 years in and property is foreclosed.and balance of principal is ~ $70K
4. Foreclosure AUCTION. Seller bids what is owed on the property???
   1. HOW DOES THIS MAKE SENSE???

Am I misunderstanding what the sheriff’s auctioneer stated? That for the most part, the plaintiff will win the bidding because they are going to bid up to what is owed. If that is the case, doesn’t the bank now have a liability of $140K for a property that originally sold for $100K???

Actual case:

Hamilton County Ohio:

Case: A1204637Plaintiff: Bank of America

Appraised at: $168K

Min bid: $112K

Plaintiff (WINNING) bid: $112K

What am I missing?

[Wayne Brooks]

@David Sabine No.  If the bank is owed $70k, and they bid $70k at the auction, they don't "pay" anyone.  They would be paying themselves, since They are the ones owed the money, and bringing the action.  It's referred to as a "credit bid".  In these cases no one bid a satisfactory amount, so the bank"takes the property" for their credit bid amount, then sells it to get their money back.