What are the main types of auctions?
A. There are numerous types, but the three basic types that you will encounter for tax and mortgage foreclosures are: • Judicial Foreclosures • Sheriff Sales • Trustee Sales The first two types involve a lawsuit, a court process, and an auction held by either the court (judicial foreclosures) or the sheriff (sheriff sales). The third type is much speedier, since the property owner never really owns the property. In this case, the lender simply files with the county recorder that the property is in default and within 120 days the property is auctioned off. There are also auctions held by HUD, the IRS, and homeowner, condo or co-op associations (when someone stops paying their dues). These are far more rare and have different processes.
