Simple Definition – Typically means the property is owned by the bank which acquired the property through a foreclosure sale.
Legal Definition – If a bank offers a property at auction through a Substitute Trustee’s sale, and the bidders do not reach the reserve, or minimum amount the bank will accept, the bank will “buy-in” the property in order to take title / possession of the property. After the sale is ratified, the bank generally will list the property with a real estate agent. After all, the bank really does not want to own or manage the property – their primary function is lending money, not owning real estate. In certain instances, the bank will “re-auction” the property rather than wait for the property to be sold under a conventional real estate listing approach.
Ownership – The bank owns the property until settlement.
Unique Process Involved – Auctioneer can often add a “Buyers Premium”, a commission collected from the buyer and paid to the auctioneer.
Important to Keep in Mind – A very small percentage of what Atlantic Auctions does.