- Sep 28, 2005
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Afaik foreclosure is by auction in all 50 states
actually i think that depends on who has the note.
If the bank has the note, then yeah, they would definitely auction it.
However Banks will sell notes to private party.
Then if the mortgage defaults, the note holder can foreclose on the property and basically take it away from the previous owner.
I know a couple of people who did this, and ended up with real estate after the sub prime lending bubble and the purchase of those notes.