Reo

Submitted by Stephanie from CA - 01/07/2011 - 3:32am

Looking at the listing of reo property, can the bank sell for more that the loan owed on the property.

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Comments

Submitted by Michelle - 01/07/2011 - 7:18am

At Trustee Sale the bank could bid as high as what is owed on the property including the past due interest and foreclosure fees up to the date of the sale. If the bank takes the property back at trustee sale they would undoubtedly list the property for the fair market value. Keep in mind that they have now incurred additional fees for clean up, sale preparation, potential past due property taxes, costs of sale etc.
The short answer is yes, they can sell for more than what was owed on the foreclosing loan.

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