Because they have sales departments now who will sell the property at a higher level if the auction doesnt me their reserve. It used to be REO depts or Loss Mitigation Depts but now they sell them themselves or with brokers they work with. Thats the only thing I can think of, I may be wrong.

Without giving legal advice, the Plaintiff gets a money judgement. He then can foreclose to execute his money judgement. The judgement is considered cash at the sale. The Plaintiff can use the money judgement "cash" to bid on the house. Very fair.