No, the bank does not need to affirmatively disclose (that is, to volunteer the information) that the driveway is landlocked; foreclosure sales or auctions are full "as is" and the buyer has to do his/her "due diligence" and discover issues like this him/herself. (Remember: the bank is not a typical homeowner: it took over the property for nonpayment, but did not inspect it, choose it, occupy or manage or use it, etc. It is not held to the disclosure standards of a property owner who had the opportunity to discover the property's issues.) However, this should be readily discernable from the deed and title (e.g. from the maps and descriptions that go with the title), since it will be obvious that the driveway does not connect to a public road. So a would-be-buyer could find this out for him/herself before bidding--and if he or she does not, the consequences of failing to do his/her due diligence is on him or her.