What Determines Who Buys At Foreclosure Sale?

[Rover]

Recently, I attended a foreclosure sale to observe.

There were bank representatives there and private investors.

There were about 20 homes auctioned off, and I am pretty sure that in every case the bank that held the mortgage bought the property.

In a handful of cases, private investors did bid, but they were outbid by the bank.

I have heard that the banks buy most of the properties auctioned.

Under what circumstances do private investors wind up winning the auction?

Under what circumstances would the bank not want to win the auction?

[HHM]

Under what circumstances do private investors wind up winning the auction?

That's easy, they outbid the bank

[Rover]

That's easy, they outbid the bank

I guess I didn't make myself clear.

What are the factors that would make them want to outbid the bank?

[HHM]

That is easy too...

Any real estate investor worth anything will have already comp'ed the area and have at least done drive by. If they can bid the property such that they can turn a profit, then they will bid.

Why don't you simply ask your question. What exactly are you trying to find out?

[Ifonly]

That's easy, they outbid the bank

LOL...I thought the same thing when I read the title of the post, "whoever has the most money and wants to spend it...."