We have a Foreclosed Real Estate Property with the previous owners belongings in the home. There are no pictures, albums or personal identifying information, mainly household items.

The bank is considering allowing the employees to get a chance to buy what they want (like a yard sale) but the proceeds are going to a non-profit fundraiser we raise funds for all year round. Is this OK or are there any restrictions?

Further if there is still items left we may open it to the public via social media. Is this OK too?

Thanks.

First, what you do with the personal property on a foreclosure is a State law issue. Second, selling assets of the bank to employees outside of a public auction, regardless of the motivation, is never a good idea. I surely hope that there also was no deficiency involved in this transaction.

Even though all the proceeds are going towards a non-profit?
I agree its just not a good idea, but how can I effectively communicate this to the bank?
Should the bank keep some sort of inventory of personal property sold to employees?

The bank does not own the personal property. Most likely your state law will require you to inventory the property and then notify the owner they have X number of days to claim the property. I would almost wager you are probably already in violation since the notification usually has a time limit you must meet.

Selling it without going through the proper process under state law will cause you a [censored] of lot more grief than satisfaction you will get out of donating funds raised from selling property you have no legal interest in to a non profit.

Dan didn't say it, but you need to get legal counsel involved in this so you don't open that can of worms.

Thanks a lot guys!