[SeeSac]

You may be correct if the sheriff is conducting an open auction. In that case, the lender will have no reason to preclude a winning bid from a third party. If it is a blind auction, the lender will submit a bid that is consistent with the balance of the defaulted debt, purchase the home and proceed with marketing the REO.

Perhaps you should go look up what a 'blind' foreclosure auction is. Thank you.

[irish_links]

A blind auction is another term for sealed bid auction. Every state and most counties in each state have their own unique rules for conducting sheriff sales and property auctions. Some are likely to employ sealed bids.

As for lender bids, in the past it was almost universally true that a lender would submit a full-priced bid for the reasons I stated. Perhaps that is less likely these days in so much as lenders will do almost anything to avoid adding to their REO portfolios. Pardon me.

What's your problem?