Foreclosure auctions
I don’t understand the foreclosure auctions. I have heard the company who holds the mortgage will bid on the property. What does this mean? They hold the note and use the house as security so I do not get how or why they have to “bid†on the house.
I have also been told that if the person foreclosed upon had no equity in the home no one will bid on the house. What does the prior persons amount of equity have to do with it? I thought at auction it just means a bunch of people bidding on a hose they want.
I am sure this is one of those things that is just so simple I am missing it. Thanks in advance to all who answer.