So, I was reading online about foreclosures and something peaked my curiosity. Our home was a foreclosure. The bank held onto it and we bought it directly from them. But I also know of banks that auction the houses off on the courthouse steps. What's the difference? And what makes a lender do one over the other?
Most times, the house is auctioned off on the courthouse steps and the bank bids on it up to the balance on the loan. So if no other bidder will pay them off, they end up with the house. Sometimes a bank will take a deed in lieu of foreclosure, meaning the bank does not have to go through the foreclosure process, and the owners don't get a foreclosure on their record.
