Why does it start so low?

[investinAK]

I found a property in foreclosure that is set for an auction date of 3/22/05 and it has a $153,400 Tax value. The starting bid is only $6,727. Does anybody know why they would start it so low? Would that be how much the borrower owed?

[REIaddicted]

I found a property in foreclosure that is set for an auction date of 3/22/05 and it has a $153,400 Tax value. The starting bid is only $6,727. Does anybody know why they would start it so low? Would that be how much the borrower owed?

Ryan,

Is this a court house step auction? You will need to do the research to find out but more than likely it is a 2nd or 3rd forclosing. You will need to follow the chain of the title to see who is forclosing, how far they are behind and what else is on the title ( first, liens ect)
If that is the case, you only own a piece of paper. Naturaly there is more to it, but that is the just of it.
Also, don't go by the tax assesed value. Do a drive by, and take a look at the property.

I would also look up the owner and give them a call and ask the questions that is in that free e-book.

Lisa