Can The Bank Profit From The Sale of a Repossessed Property?

By
Real Estate Broker/Owner with REVOLV Real Estate Broker MA & RI

Yes. The commonly held notion that a bank (or any other lender) must sell a repossessed property for the same amount it cost to gain possession and therefore cannot make a profit is false. If the foreclosing lender is the successful bidder at the auction, it will take possession of the property for the very first time. When this happens, all the rules change. The lender, now the legal property owner, can do anything it wants with the property, Rent it, keep it, whatever. It can also sell the property for any amount it so desires.

Comments (1)

Lisa Friedman
Alliance Realtors - Bedminster, NJ
Central New Jersey Real Estate

The bank owned listings in our area all seem to be overpriced. Plus, they need work ontop of being priced so high so they often take longer to sell than owner occupied listings.

Jun 13, 2008 03:11 PM