Posted by Rob FL on December 14, 1999 at 09:49:23:
A certificate of title (In Florida), is the final deed issued after the public auction is held for a foreclosure. Normally, if there are no other bids, the lender would be purchasing the property back. Usually this happens when there is minimal equity.
Lenders usually start bidding at $100. Why? Because Florida has a sales tax (i.e. documentary stamp tax) on title transfers amounting to $.70 for every $100 of purchase price. Lenders don’t want to pay anymore tax then they have to, so they all start bidding at $100 but will max out at the total amount owed if another party bids against them. If the lender forecloses, no money will actually change hands, since all the proceeds of the sale would revert back to the lender anyway.