There is a "notice of sale" in today's paper for a house that my niece is interested in.

It says "approximate amount of judgment is $56,252 plus interest and costs". Does she just go to the public auction and bid?

How does it actually work? Does the bank have to take the highest bid or do they only let the house go if someone bids $56,252?

What happens if no one bids that high? If the bank takes $45,000 does the homeowner have to pay the difference to the bank?


If the bank actually gets more than the $56,000, does the original owner get the difference, or does the bank actually keep the "profit"?

Although, our area is so depressed, so I'm pretty sure they would never get more than the $56,000. Actually, I know a little bit about the house and it's my understanding that the house is worth quite a bit less than the $56,000 so my niece would never bid much more than $45,000.

Every state and county can be different. I would suggest that your niece talk to an attorney who specializes in real estate, or else an agent who works for a realtor. They can best advise her. Good luck.

The bank takes the highest bid. If a bid was made for $40,000 on the above property, they would bid the balance owed in order to take possession theselves.

I don't understand. Are you saying the bank would keep the house?

Yes, It would ne theirs to sell or do what they want with. If it sells for more than what is owed them later on, they keep the profit.

If the house sold for more at auction than is owed the bank, the excess would go to the debtors.

Why don't you just call the bank and ask them.

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