Why are banks listing forclosed houses for sale but not selling them?

while i was looking for a house I noticed a trend in my area. Houses would go on the market as a Forclosure auction (the property as empty, old owners had already been forclosed on), I actually put in an offer on one of these properties and lost the bid even though my bid was above the asking price. The status of... show more while i was looking for a house I noticed a trend in my area. Houses would go on the market as a Forclosure auction (the property as empty, old owners had already been forclosed on), I actually put in an offer on one of these properties and lost the bid even though my bid was above the asking price. The status of the house would go to "pending sale" then a few months later it would be "off the market" not sold. I was under the impression that If I offered above the asking price that if the sale fell threw that I would be contacted and given the opertunity to purchase the house...
Update: my bad, it wasn't an auction....it was just for sale but was being offered by the bank from a forclosure. At any rate the first two responders are very rude....
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