Banks Buy Back Price Means What Exactly?

Generally in a foreclosure auction, the lender can only bid what they have into a property, what is owed plus any fees they incurred reaquiring the property. There are many factors that will weigh into a banks decision on their opening bid at the auction. What is the property worth, what is the LTV, do they know of any problems with the property prior to the auction. Is this a small bank or large bank that is out of state. There are many varibles that play into a banks decision into taking back a property and nearly all banks want to avoid this at all costs! I hope that this information helps!!

When a bank forecloses on a property they have the defaulted loan amount, plus late payments,penalties, legal fees, etc... so that's why a mortgage of 100K can result in a judgement of 125K, 130K etc.
The property is advertised in the local paper & then goes to county auction. The bank, being the plaintiff has the opening bid of usually $ 100.
Now if there are other people bidding the bank will only go as high as the judgement amount. If the bidding goes higher, then that person wins & has to pay for the property in full with cash/cashier's check by close of business that day.
Since most foreclosures have a judgement amount way more than what the property is now worth(usually twice the amount or more) most people won't bid,
& that's why when you check the county clerk's website you'll see "to or from bank" & the amount, say $ 100.
In some instances a bidder may think they can get the property for a lower amount, let's say $ 40K, so the bank would bid 40,100 ... if there are no more bids the bank gets it back at that price.
After the bank gets the property back, it becomes a REO, then they will list it with a RE broker to be sold. The price will be whatever their appraiser & the RE broker come up with. Until us investors make low ball offers.