Belt Auction

how do some foreclosure properties end up as auctions and others as bank-owned?

In my zip code, we have about 93 properties that are foreclosures according to Trulia. Most of them are listed as auctions, but some are listed as bank owned. I don't know anything and so I would think that the lending company would own all of the houses. Are the bank owned properties just not yet scheduled for auction? Or have they failed to be auctioned?

Public Comments

1. The auctions already happened with the bank owned, no one bid over the reserve.
2. They have failed to obtain the minimum bid at auction. So the lender places them with a local realtor
3. Some of the "auctions" you are seeing may not be actual foreclosure auctions, but rather auctions where the bank is selling off their REO property. Once the bank takes possession of a property that was in foreclosure, they have to sell it. They can either do that on the MLS as a general REO listing, or via auction.