Foreclosure in 02364>Question Details

Sue Foley, Real Estate Pro in Braintree, MA

Why does one house go "to auction" while another house is sold as a foreclosure?

Asked by Sue Foley, Braintree, MA Fri Dec 30, 2011

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Anyone can put a house up for auction, it does not have to be a distress sale. Auctions are a way to get a quick result. The theroy is you have many people in one place that are interested in a property all bidding to get the best deal. There are absolute auctions (no reserve price) or a minimum price auction (won't sell below a figure) The lower the minimum price or an absolute auction the more people will attend.

But if a house is in the foreclosure process, the last step is to have a foreclosure auction, at which time it is sold to the highest bidder, in most cases it is the bank,
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0 votes Thank Flag Link Sat Dec 31, 2011
Hi Sue, Easy answer-all houses "go to auction" but in most cases the bank buys it back and then re-sells it as a foreclosure.
0 votes Thank Flag Link Fri Sep 7, 2012
It depends on where you are reading about it and/or if it is actually being foreclosed. Some owners choose to auction their property. In MA it is not very common. Properties being foreclosed will be auctioned as the sale part of foreclosure process in MA. If you are reading ads as the source of your question, you may need to ask the advertiser whether the property is a voluntary auction or if it is a foreclosure.


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0 votes Thank Flag Link Mon Jan 9, 2012
In a foreclosure process, the auction is the method by which a lender tries to sell the home so that their mortgage can be paid off. If they can not get a bid that satisfies their loan, they will then take title to the property. Some time later,possibly after few months, you will see the same property being sold as bank owned or foreclosed property.
0 votes Thank Flag Link Sat Jan 7, 2012
Going to "Auction" is the Trustee Sale, which is a necessary step in the Foreclosure process.
That is the day it is either sold, or the Bank takes posession.
0 votes Thank Flag Link Fri Dec 30, 2011
Odds are the house sold at foreclosure was bought by the foreclosing bank. All Forclosures in MA go to auction before the bank buys them back.
0 votes Thank Flag Link Fri Dec 30, 2011
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