Hello,
Do trustees have a deadline for determining opening bids? How far in advance of the auction must opening be bids posted? Can they be announced the day of the auction? Is this a common occurrence?
If no opening bid is determined, must the auction start at published bid (assuming it’s not cancelled or postponed)?
Thanks!
Hi Alex,
In CA the trustee/lender is not legally obligated to post the opening bid in advance of the sale. The auctioneer can announce the opening bid for the first time when the sale starts.
The lender gets to make the first bid which is the opening bid (or sometimes called the drop bid because it can be substantially discounted). The lender can do a low/high bid and start the auction with a low opening bid and can credit bid up to the amount owed on the foreclosing loan.