Foreclosure Bidding Question

[shawniepea]

I recently signed up to bid on auctions in my county.  I see a lot of bids that go no higher than $100.  Does this mean that I can get a house/condo for $100?  Should I be leary of bidders not bidding on these homes?  I guess my main question is why doesn't the bid go above $100 in some cases?

[jmd_forest]

In my experience $100 bids that win are from the banks that hold the mortgage because all the other bidders know the bank will continue to bid up to the "upset price" (how much the previous owner owed in mortgage, fee, interest, etc) and the "upset price" is more than the property is worth. At least in my area, the upset price is advertised for each property. There are exceptions but they are extremely rare.

Again, in my experience, properties with equity above and beyond the upset price are generally subject to aggressive bidding.

jmd_forest