I can’t really see auctions being that effective in moving these properties at reasonable prices. In areas where homes are $200k and less I can see it working, but once the prices exceed that the buyers who can perform are going to want too large a discount (dollar wise) to make it worth the lender’s while. A 30% discount on a $100k home is only $30,000 – a lender can take that kind of loss. They can’t take a 30% loss on a $500k home.
