Search old posts, there have been lots of discussions in the past regarding courthouse steps auctions. Haven’t seen the scenario you describe, post an address and we can collectively figure out the reason or the back story. One possible explanation is that a property with a 500k market value might have 150k in 2nd or 3rd mortgages and be behind a few years in taxes and hoa fees. When buying at the courthouse, you have settle with all the liens, so 300k to the bank and 200k to everyone else doesn’t end up as good of a deal. If the bank takes it back, they settle with the other liens (taxes for retail but often less to the others) and then sell on the open market. Reo buyers usually buy clean title, not so at the steps. Other screaming deals at the steps are cracked slabs or structural issues. Anyway you slice it, you gotta come with cash, no loans for the steps, so there are some deals to be had but there are many bidders, so if the others pass on a half off market property, there is probably a reason.