Under a sale with appraisement, the debtor has the right to bid only if the bid equals which fraction of the appraised value?

• A. 1/2
• B. 2/3
• C. 3/4
• D. 4/5

Answer: (B)

In a sale with appraisement, there is a specific minimum the debtor must meet to bid in order to keep the property. That minimum is two-thirds of the appraised value. The idea is to give the debtor a fair chance to redeem the property without allowing bids that fall well below what the property is judged to be worth. For example, if the property is appraised at 600,000, the debtor would need to bid at least 400,000 to qualify. Bids below that floor aren’t eligible for the debtor, while bids at or above that level proceed with the sale process. The other fractions would set different floor levels and aren’t the established rule.