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Do ALL foreclosed houses use bidding process?

if not, then which ones use bidding...?

Public Comments

1. 1 - No. 2 - HUD.
2. When the homeowner stops making payments, the house is "foreclosed". By law that means that the house is "auctioned" to the highest bidder. The bank enters a bid for the existing loan amount. Sometimes they add the back payments, late fees, and attorney costs. To buy the house , another bidder must pay more than this amount. Since the house is worth much less than this amount, no one bids at most foreclosure auctions. But there was an auction held.... and if no one else bids, the deed is given to the bank. Once the house is owned by the bank, they can sell it however they want. They can have an auction, they can list it with a realty agent. Usually they try first with an agent; then they give it to an auction company.