What are the general differences between a public auction and a foreclosure?

Generally, a public auction is for sale by owner. The owner may or may not be in financial distress and the owner has concluded that selling the property via the auction process is the most effective method for getting a property sold quickly. As selling at auction moves further towards the main stream, more and more people are finding that selling their real estate at auction is the best way to maximize value in a very timely manner.

A foreclosure, on the other hand, is a forced sale by creditors, which is a highly regulated legal process. These homes are auctioned sight-unseen and are generally held on the courthouse steps of whatever county the property is located. However, sometimes foreclosure auctions are held at the actual property location. (This makes one of the benefits of an MDAuctions membership – access to auction location listings – very valuable.)

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