Auction

Stage Signal

Definition

A foreclosure auction (also called trustee sale or sheriff sale) is a public sale where a foreclosed property is sold to the highest bidder to satisfy the outstanding mortgage debt. Auctions typically require cash or certified funds and are held at designated locations like courthouse steps or online platforms. The opening bid usually starts at the outstanding loan balance plus fees, and winning bidders typically receive a trustee's deed or sheriff's deed.

Real-World Examples

Example 1: An experienced investor attends a county courthouse auction with $200,000 in certified funds, successfully bidding on a property with an ARV of $350,000.

Example 2: An online foreclosure auction platform allows investors to bid remotely on properties across multiple counties, expanding their investment reach.