No Bids at the Sheriff's Sale....How Do I Buy An REO?

[Marc M.]

Hello BP,

I have been attending the weekly sheriff's sale in Detroit (Wayne County, MI) to learn the ropes and recently saw two properties I was interested in have their deeds called, but there were no investors who wanted the properties. (An aside, only a few people attending these auctions actually buy in the city of Detroit....most go after the suburban properties...I'm sure @Joshua Dorkin would find this amusing!). If my title search for these two particular properties comes back clean, what is the best way to approach the bank to buy them?....and is it likely the bank would sell them to me for less than the sheriff's sale price? 

Some background...one SFH house had $112K debt and was offered for $38K (no takers) and the other had a debt of $65K and was offered for $65K (fair price, but no takers).

Going forward, I will have my title searches done prior to the auction and will gladly bid $1 over the price, but like I said I've been a spectator for the past few months. I'm just curious what will happen next to these two houses I like...and is there still an opportunity to buy one of them?

Best,
Marc