List Price for Foreclusres

[VicChung]

Hi,

Just wondering if anyone knew how banks come up with the list price for foreclosures? Is it mortgage balance on the property + liens?

Thanks, Vic

 

[housingrental]

Hi Vic

Not 100% on other area`s in Canada but I think their similar
In Ontario they need to go close to market value... so if property is worth $500K and mortgage is only $200K defaulting on it`ll still list for $500K .. or $490K... something close...
They have a legal obligation to the person being foreclosed on...they can`t just dump the property to get rid of it.

 

[RedlineBrett]

QUOTE (VicChung @ Jan 2 2010, 04:44 PM) Hi,

Just wondering if anyone knew how banks come up with the list price for foreclosures? Is it mortgage balance on the property + liens?

Thanks, Vic

Usually based on the appraisal which must be included with a foreclosure action when the bank sues the mortgagee.