Who sets the auction price?

[Lance Clifford]

Ok, so according to this site, the foreclosing lender sets the price:

"At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender."

Well here in Northern CA, many of the auctions open up well below what is owed, and some open at what is owed, even if it is well above the value of the property.

At an auction I went to yesterday there was a bank representative there to "make sure" nobody walked away with the property at minimum bid.

So why would they do this? Why wouldn't they just sent the opening bid higher?