I had to sell some lots that way once--back in the 1980's when whoever was running Ronald Reagan was trying to destroy America. I should mention that I was a civil contractor, and I took the lots over because the original owners couldn't pay me. The auctioneers made out like bandits, but the first mortgage holders didn't come out whole and turned around and sued me for the deficit.
                I discovered later that some of that depends on which state you are in. In some states the bank(s) could not have done that, as I understand it.