Sheriff Sale

[Nas31]

What is the name of your state (only U.S. law)? Indiana

Hello,

I recently had a rental property I owned with a business partner go through a foreclosure. I seen it was sold at the county sheriff sale last month. I noticed the "Purchaser" was the company I had the mortgage through. The sale price was $7,000 higher than what was owed. I am unclear on why the company that was owed, was the "Purchaser"? What happens with it now?

Thank you

[seniorjudge]

Q: I am unclear on why the company that was owed, was the "Purchaser"?

A: Because it was the highest bidder.


Q: What happens with it now?

A: Ask the purchaser; I don't know.

[Nas31]

I figured they were the higher bidder being the purchaser, but I dont understand why they would bid on a property they foreclosed on and are owed on?

[FlyingRon]

Originally Posted by Nas31

I figured they were the higher bidder being the purchaser, but I dont understand why they would bid on a property they foreclosed on and are owed on?

Because it protects their interest.

Lets say you owe $100,000. They foreclose. The house goes to auction. Some local real estate speculator bids $20,000 on it. Well the bank gets $20K and loses $80K. So they bid the minimum they want to get out of it, usually close to what they are owed, they don't want to bid more because that would just be throwing money to the deadbeat who defaulted on them or the junior liens. They either want some white night to buy the place and compensate them fully, or they'll take it as REO and try to market it themselves. It's all about them getting the maximum chance of getting their money.

[Nas31]

Thank You Ron for the Answer, clears some things up. but just for the record, NO Deadbeat here, just had a bad business partner who didn't take care of his part and left town and I was left trying to fix it....