Mortgage company buying own foreclosed property
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Mortgage company buying own foreclosed property
My property was foreclosed on and being sold at auction. I received a letter from my mortgage holder that they received a bid by what looks to be their own company for a lowball amount. Can the foreclosing company buy its own foreclosed property and stick the person being foreclose with the different in the loan and foreclosed amount? VA home loan.
Asked on October 18, 2019 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Yes, they can. If a higher bidder comes in, they'd have to sell to the higher bidder, so they can't refuse higher bids--but if no one bids higher than them, they can buy the property and the former owner will be liable for the balance due.
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