In Avoiding the $475,000 Mistake – Entering the Credit Bid, John L. Hosack and mortgages expert witness Joffrey Long write:
Finally! The delays are over and your foreclosure is going to sale. The trustee asks for bidding instructions. The grand total owing on your loan (a first trust deed) is $575,000. The value of the property is $500,000. Would you open the bidding at $575,000? It could be a big mistake. Surprisingly, many otherwise sophisticated lenders and servicers, including large banks, are completely unaware of this problem.
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