auction price how does it work

[domdom]

Good morning

 

I have a technical question if any good specialist can tell me

Condo on auction for 800K (land office value).. Market value approximately 2 M..

BUT mortgage on this condo and of course expenses to pay to the condo management as there are arrears (reason for the auction, actually)

What happens if somebody buys for 1 million for example, which is under the mortgage value... The buyer has to pay the price and costs for auction, the arrears to the condo management.. what happens with the mortgage which is way above the auctioned price I asked the lawyer in charge of the auction but got 2 different answers from his office... so, would like to know exactly how it works..

Thanks in advance

Have a nice day

[baansgr]

The bank holding the mortgage are the people to ask. Are you sure there isn't a reserve price so the mortgage is covered, unlikely the lender would take a loss if as you say MV is 2 mil

[domdom]

The mortgage is not from a bank but from a farang individual.. the basic price is land office value..  I couldn't get a precise answer from the lawyer who auctions...  One told me the person who buys would still have to pay the mortgage after buying.. In this case nobody will buy as the mortgage is already higher than the market value..