How does the bank decide if they want to put the opening bid below market value or at the loan amt owed (thus basically deciding that they want to keep the property as no one would buy a home above market value). Do certain banks have tendencies to keep more properties or does bankruptcy matter?
We wish there was an easy logical answer to this one. The truth of the matter is that we really do not know nor can we predict which properties will have a low opening bid and which ones will not be discounted at all. It has to do with so many factors including but not limited to the investor, mortgage insurance, re-insurer, portfolio manager, market conditions and the list goes on and on. When you consider that Bank of American alone services loans for over 500 different investors you can see that there is no real way to predict the opening bid.