Banks and deficiencies
Why do banks bid at auction and sell properties as REOs. My understanding is that the bank receives 85% to 90% of the deficiency from the fdic regardless of wether it was sold at auction or as an REO. So it wouldn't make a difference if the property was sold at auction. The banks would still be compensated for their losses from the fdic. So why the mad rush to buy them at auction. Am I missing something?