Is it normal for a bank to auction your property for the lower value i.e
the loan and not the mortgage?

Anyone know why.

H

A bank is only interested in getting back what they are owed. So its not uncommon to set the minimum bid to just cover the outstanding balance plus fees.

You may be able to 'enhance' the bid if you can get other interested buyers to the auction, especially if you know their names and phone numbers. A friendly real estate agent may help with a list; then again, since their efforts failed, they may not.