Priority Posting and Publishing Inc. required an opening bid of $355,643, but no one bid on the four-bedroom, three-bath house in La Habra, about 25 miles east of Los Angeles. The auction previously was postponed four times.
It's unknown how long foreclosure might take.
Suleman is the mother of 14 children, including octuplets born in 2009.
Before moving into the house on Madonna Lane, Suleman and her first six children lived with her mother. But that small Whittier home was foreclosed on just as her octuplets were becoming healthy enough to leave the hospital.
The previous owner of the Madonna Lane home said Tuesday he was happy to see Suleman and her family go because of the damage they did to his credit.
"They betrayed me big time," Amer Haddadin told The Associated Press. "They destroyed my credit. Shame on them."
Haddadin lived in the house for 11 years before selling it to Suleman's father, Ed Doud, about three years ago for $115,000 down and a $450,000 promissory note. Doud promised to pay $4,000 monthly, but a $450,000 balloon payment was due in March 2010.
Suleman did not qualify for a traditional bank loan, so her father came to her rescue. She held the deed to the house, but she paid Haddadin, who paid the mortgage company.
Haddadin said he and Doud went to the same church and as a Jordanian, he took pity on a fellow Arab in a tough spot and pledged to help Doud, who is Palestinian.
"In a way, I am very glad that she will be kicked out because she is irresponsible, for all the things she did. She doesn't deserve it, the house," he said.
"My credit is very valuable to me. I do business with my credit," Haddadin added. "Now I am strangled. I don't have anything to depend on."
There is no number listed for Doud or Suleman, and calls to an attorney who has represented Suleman were not immediately returned.
Suleman recently declared bankruptcy, listing assets of no more than $50,000 and debts of as much as $1 million. Records show she owes more than $475,000 on the house.
Haddadin said he was recently notified that Suleman's father had also declared bankruptcy.