A foreclosure auction is a unique way to own a property, and if you know the tricks of the trade, you can get a great deal. Seller’s auctions and foreclosure auctions are mainly two types of auctions conducted in real estate.
When the statutory time in preforeclosure has run out for the borrower, the lender auctions the property to the highest bidder. These auctions are open for all, however, the lender usually bids the full mortgage amount in addition to penalties, accrued interest and fees. Hence, your bidding has to be higher than the lender’s price.