It is kind of hit and miss in my opinion. I am not an expert on how the opening bid is determined but for sure it will in part depend on the BPO/Appraisal that is ordered by the asset disposition company. Obviously the other part will be what is owed on the property as well. So it is more of an art then science. Honestly it is alot like the overall housing market now. Look, when we first were in the downward spiral remember how we all used to complain about sellers in denial and not pricing the home correctly? Well now we have a much bigger problem which is buyers going gonzo and multiple offers, and a trip back in time to 2004… So I am witnessing the same fun and games… Look… a home in Mira Mesa went today on Penrod. Not a bad place but it went for 359k!!!
Think about that okay? Back out commissions and closing costs.. maybe if you are hell of lucky you get 400k for the place and that is a stretch… (although in the crazy town that is MM today maybe you get that) but back out say 4% and you are at 384k right? So 25k profit… less the 10%! After Uncle Obama and aunt Arnold get through with you it is piddle…
So that has an “okay” opening bid of like 326k…
Anyways it is what it is records… alot of work and don’t sweat the opening bid…sweat the competition because the guys at these things are good… and the dodos at these things are the ones that will cost you thousands… I can 100% promise you that any good opening bid will get run up.
As far as the servicer, no the servicer is who basically services the loan for the beneficiary. The trustee is who basically holds the deed of trust and is authorized to auction it off at a public auction at the conclusion of the foreclosure process. The guys at the actual auctions (the guy actually auctioning the property) may represent 1 or more trustees.
