Why do lenders sell foreclosed homes at auctions?
The mortgage meltdown has resulted in a dramatic increase in the number of homes lenders have taken back as borrowers stopped making payments on their loans. It would take years for lenders to liquidate this inventory through the traditional sales method of one home at a time. Instead, they turn to home auctions where they can sells dozens or even hundreds of properties in a single day, reducing their costs to hold, maintain and market their real estate owned.
