I am noticing the published bid seems to be explained as the opening bid price. However, some of these prices are extremely high for the location of the house. Im finding things in Victorville that should be in the mid 100’s but the published bid will show 450k. Can someone please explain this to me? Im new here and Im still trying to figure this website out. Thank you!
Hi Dinesh,
The published bid is the amount owed on the foreclosing loan at the time the Notice of Trustee Sale is prepared. This includes principle, past due interest and foreclosure fees. At the sale the foreclosing lender gets to make the first bid, called the opening bid or drop bid, which can be as high as the published bid plus any additional interest that has accrued or they can substantially discount their opening bid. In CA there is no legal requirement for the lender to release the opening bid in advance of the sale. This opening bid could be posted days in advance or be announced at the start of the sale. This is one of the many things that frustrates the seasoned auction investors.
We highly suggest you watch our video on what happens at a trustee sale.
http://www.foreclosuretruth.com/blog/sean/video-foreclosure-auction-guide/?