What happens if a property is sold at a foreclosure auction?

When a property is sold at a foreclosure auction, if it does not sell for an adequate amount, the lender retains the right to take possession of the property. This typically occurs when the auction bid does not meet the outstanding debt owed on the property, which can happen if there are few bidders or if the bidders are not willing to pay the amount the lender is owed. In such cases, the property may revert back to the lender, who then may attempt to sell it again, often through other means such as a real estate listing or another auction.

This process underlines the lender's interest in recouping the losses from the defaulted loan. The lender might not be able to recover the full value of the property, but they can take control of it to mitigate further losses and extend the option for subsequent sales to get as much back as possible. Therefore, option A accurately describes what happens with unsold properties at foreclosure auctions, emphasizing the lender's role in managing properties that do not sell for sufficient amounts.