What Happens After An Unsuccessful Auction On R.e.o. Real Estate Owned Property?>>>>>>>?
I work for a title company and just got transferred to the reo dept. Ok, so first the bank files a foreclosure complaint. Then a sherriffs sale (foreclosure) occurs. 2 questions. What happens if no one bids at the sherriffs sale? Does the bank still own the property? And are they required to release their mortgage? 2nd question. What happens if a “John Doe” wins the auction. Does the bank get this money and thereby release their interst by satisfying the mortgage?
You should ask your boss & coworkers. It’s part of learning on the job. Don’t be embarrassed.
If no one bids at the auction, the bank “bought” the property & get the title transferred to the bank. The borrower no longer owes the bank money. But the bank is responsible for any liens ahead of their interest.
If John Doe won the auction, he bought the property & get the title transferred to him. The bank gets paid & that lien owned to the bank is wiped out. John Doe is responsible for any liens (if any) ahead of this bank’s lien.
i believe that the bank will still own the property if there is no sale. if they are not able to sell it / they will get a defiency judgement. usually only the first and tax liens are the ones that get paid.