Forecosure auctions are used when the borrower for the loan to buy a home or property can not pay on the loan and has lost the property. These auctions are usually used fairly quickly after the home has been foreclosed on. They are also usually to sell the home at a low price so the bank can get rid of it and get a return on the money loaned or mortgaged. It is when the program or sheriff auctions a property the noteholder will set the price. The bankruptcy rulings, or other reasons to be considered are used. The home may be even at a lower price than what is left on the loan if the home is thought to be of a lesser value than what is left on the note. This usually will attract those who are looking for a home to live in or to re-sell for a larger amount than what they buy it for.

This process is usually good to find a cheap amount of property and re-sell it or to live in. These auctions can be a very profitable venture for those attending. It is a way to find a property at a low cost that is at a much higher value.