What is an upset bid in a foreclosure?

An upset bid in a foreclosure is when a higher bid is offered on a property in foreclosure. This higher bid has to exceed the original amount of the foreclosure and any additional bids. In the state of Florida, if a third-party offers a higher bid, then the lender that initiated the foreclosure has the right to reclaim the property by matching the additional bid. This is called an “upset bid.” If the original foreclosing lender does not make the upset bid, then the third-party bid must be verified by the court before the sale can be finalized. The court may also require the original foreclosing lender to provide the additional amount of money needed to surpass the third-party bid before the sale can be finalized. An upset bid is a way for the original lender to reclaim a property up for foreclosure and is a protectionary measure to make sure the new buyer pays a fair price for the home.

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