That is not how it works.
The lender will post the property for a low price as what happend in your case. If somone bids the lender will continue to bid up against the person up to the amount you owe them.
The reason they do this is to save money on recording fees, taxes on the recording etc. They would have not have actually sold the house for that reduced amount at auction.
Since no one bid, they accomplished what they set out to do. They can record the re purchase for the low amount and save alot of money on the fees.
They will sell off the property at normal foreclosure price now and sue you for the deficiency.
Anyone who told you that you can re purchase the home for $38K is 100% wrong. That is not how it works.

