Foreclosures: Will banks cut their losses?

Foreclosures: Will banks cut their losses? - Buy a House: MLS Listings & Home Buying Tips - MSN Real Estate: "With a wave of people losing their homes, lenders are considering whether to auction off properties for less than what they're owed.
By Aleksandra Todorova, SmartMoney
© Beathan/Corbis

Brett Golden, 31, was one of the few bidders at a recent foreclosure auction to walk out with a purchase: a 2.5-story, 1,352-square-foot house in Queens, N.Y., that he got for $365,000. The previous owner had bought it in June 2005 for $415,000.

Once Golden and his father -- who together run a 50-year-old family business of buying and flipping foreclosed properties -- are done fixing this place, they hope to sell it for about $480,000, netting up to $80,000 after expenses." San Diego real estate agent