How does this work if one bank starts a foreclosure then sells to another bank before foreclosure is complete?

Question by kelly2sxy: How does this work if one bank starts a foreclosure then sells to another bank before foreclosure is complete? I have a mortgage with one bank and could not pay so the bank started foreclosure proceedings. The foreclosure is not completed yet so does the new bank have to start all over [...]

When a bank-owned / REO house sells for a profit, is this profit passed on to the previous owner?

Question by STacey: When a bank-owned / REO house sells for a profit, is this profit passed on to the previous owner? My understanding is that profits made at auction are passed on to the initial homeowner/borrower. Does this apply if the house does not sell at auction, becomes officially bank property, and sells, …