Why foreclosure? Why not sell? Especially in this market?

[Kelly Davis]

We recently attended our first courthouse foreclosure auction in Gwinnett County.  We saw 4 houses come up for auction while we were there.  All 4 houses sold for ridiculous prices.  So we're sitting there thinking, why are the homeowners letting their house even get into foreclosure?  Why would they not just list it for sale and pay off their debt?  Any insight here?