I could be wrong on this (probably am) but I thought the courthouse steps one was to serve the “one and done” rules. So foreclosures where the foreclosed owner has not done a deed in lieue… It is an opportunity for anyone with cash (all cash) to bid on a foreclosed property. If the reserve isn’t met, it goes back to the bank and becomes an REO.

SD Realtor used to buy at these.

Perhaps the other auctions (private/hotel) are a way for the bank to get rid of their REOs. Get that shadow inventory off their books and not have to pay realtors fees. (I’m assuming an auction is cheaper than the realtor fees… again – I could be wrong… probably am.)