foreclosure auction

A foreclosure auction is a public sale of a property that has been repossessed by a lender due to the owner's failure to make mortgage payments. When homeowners default on their loans, the lender can initiate foreclosure, which typically leads to an auction where the property is sold to the highest bidder. The auction is conducted at a courthouse or online, and potential buyers must be ready to pay immediately or shortly after the sale. The proceeds from the auction are used to cover the outstanding mortgage debt, and any surplus may go to the former homeowner.