Why do bankers sell foreclosure properties at auction when they could make more otherwise?
Frank Chan offers this interesting insight at creonline.com about their preference for auctions.
1. They’ve already taken the loss.
2. The auction setting gives them a higher profit because, in their world, it’s a 100% profit.
And here’s something else that wasn’t mentioned… the bank would rather have an owner occupy the home instead of an investor.
Read his case study here…