Property Reverts to the Bank

9th in our series of 10 blogs on Foreclosure Auctions is Property Reverts to the Bank.  In the unfortunate event that none of the bids are accepted in a foreclosure auction, the property will revert to the bank.  This simply means that none of the bids were high enough for the bank to recoup its losses for the mortgage.  Banks are required by their shareholders not to lose money; therefore, when a homeowner is unable to pay their mortgage, it becomes the bank’s responsibility to try and recover the money at auction.

If the foreclosure auction doesn’t result in bids that will satisfy the mortgage, the bank will simply withdraw the property from auction and take possession.  The bank then has several options: the property can be rented, put up for a regular real estate sale, or sold as an REO.  The local market and how many properties the bank has had to foreclose will indicate the best solution for the bank.

For more information on foreclosures and REOs in the Metro NY and Long Island area, please attend the lst annual New York Foreclosure Showcase on the 12th of October which is sponsored by Island Advantage Realty LLC the recognized experts in this field.

The advice and tips offered in this blog are intended to be solely informational and do not apply in all circumstances.  Make sure that you consult a real estate professional, financial consultant, attorney or accountant before taking any action.  For further information or questions please contact www.nyforeclosureshowcase.com.