What occurs during a foreclosure auction?

During a foreclosure auction, a public sale of a property takes place after the borrower has defaulted on their mortgage. This process is initiated when the lender seeks to recover the remaining balance of the loan by selling the property that secured the loan. The auction is typically open to the public, and anyone interested in purchasing the property can participate by placing bids.

The property is sold to the highest bidder, which could be an investor or another buyer. This auction is a key step in the foreclosure process, as it allows the lender to recoup their losses from the default. Because of the public nature of the sale, it offers transparency and an opportunity for various bidders to compete for the property, potentially leading to a better sale price for the lender.