how come some foreclosures are auctions and others arent?

[Account Closed]

agents always send me some foreclosure properties that need some work. and then they say make a bid and see what the bank says.

how come they do that compared to the foreclosure auctions where there are a bunch of investors outside the house making live bids?

[Mitch Messer]

Hi Gary,

That first category you mentioned are properties that have already gone to the foreclosure auction. No one bid on them, so ownership went to the bank. These are therefore called REO properties, for "real estate owned" (by the bank). The bank lists them with an agent who calls you to see if you want to make an offer.

The second category are, as you said, bank foreclosed properties being sold at auction to the highest bidder.