The link below explains the process very succinctly. You can also turn up hundreds of answers by typing in "foreclosure process" into a major search engine, such as Google.

Fri Mar 28 2008, 10:52

Foreclosure properties are in the process of being foreclosed but still owned by the people that bought it.

Bank-Owned properties have been foreclosed and are referd to as REO (Real Estate Owned) indicating that the foreclosure has taken place.

Auction properties are those that have been placed with an auctioneer to be sold to the highest bidder. There may be a minumum acceptable bid (called a reserve).

Here in Florida any real estate that is auctioned must have an actively licensed real estate agent present to say "SOLD" when the auctioneer tell them to say it. I do that at estate sales after the stuff inside is gone. The rules in your part of the country might vary on auctions so check with the locals there.

Hope this helps your understanding

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate

Fri Mar 28 2008, 08:59

A property must be foreclosed on to allow the bank to take back ownership with clear title. Once it has ownership they may list or auction it to the highest bidder. It is often better to gain properties before foreclosure while occupied in a short sale. Good Luck! Essex Co meets each Tuesday in the county sherrif's office...its a mad house and not every property is called.

Fri Mar 28 2008, 08:45