Hi Kelly:
I am so sorry you lost your home. When the lender took back their home, you were in default. They will try to unload the property at what ever the market will bear.
Should you be in a position, where you have repaired your credit, and need to purchase a new home, at perhaps a more affordable price, please do not hesitate to call me
Don Bradbury 215-536-6777 x 329

Unfortuantely for you they are allowed to sell the property for whatever the market will bear be it for a gain or a loss.

Remember, they did not foreclose based on value. They foreclosed based on DEFAULT.

Hello Kelly, Absolutely. When a repossessed property is sold based on the highest bid, typically the remaining balance on the mortgage loan is the bidding starting price. A house that went through foreclosure auction and failed to attract any bids officially becomes property of the bank.

When foreclosed homes are put on the market, they are appraised and priced "fairly", usually defined by the relevant state as a certain percentage of the home's assessed market value. The assessed value depends on the home's condition, neighborhood, nearby schools, and other factors, in addition to the general demand for housing. However, in the rush to sell foreclosed properties quickly, appraisals are sometimes made hastily and consequently the houses may be undervalued.