Bank Owned Property Auctions

They unload - any balance is still owed by the person who took out the original mortgage

Is that in the UK? I think here in the US if the state is non recourse the creditor cannot go after the debtor for the balance of the outstanding principle on the loan.

I went to an auction. The sheriff reads the case and says what the lowest bid is with the minimum bid being what is "owed" to the bank. The bank representatives then wait to see if anyone else bids (can do it for as little as $1 over) and if nobody else bids the bank hands a check to the sheriff and they take over the "asset" with their own printed paper.

It keeps the property "value" where it had defaulted at. It also changes the accounting at the bank, not sure which column it would go under. Assuming the asset column. Anyway, that's how it worked in Kansas.

thanks for all the info
i think my state may also be the same 709535, this piece of property is a bank owned property going to auction at the end of the month, it was way over priced back then so i'm sure if they start at the amount that is still owed on it they will never sell it. i've never done this and have my financial ducks in a row, just looking for some info on what to expect when i get there.

Last Edited by Aileana on 08/13/2010 08:19 AM