Foreclose Online
Foreclosure auction
When a bank auctions a repossessed property, they will typically set the
starting price as the remaining balance on the mortgage loan. Many times,
however, in this market the bank will set the starting price at a lower amount
if it believes the real estate securing the loan is worth less than the loan.
This is not usually the case in the state of Alabama.
In the case where the remaining mortgage balance is higher than the actual home
value, known as an Upside-down mortgage, the bank is unlikely to attract auction
bids at this price level. A house that went through foreclosure auction and
failed to attract any bids becomes property of the bank. It is called "REO"
(real estate owned). The bank will typically try to sell it at a loss later
through standard channels.