When a property owner fails to pay the mortgage, the mortgage holder can foreclose on that property. During the foreclosure process, the property owner has the opportunity to pay their delinquent debts to get their house out of foreclosure. If they are unable to make sufficient payments, the court will order the property be sold at auction. The auction takes place at a public location designated by the court after publication in local newspaper.

For purchasing the property one has to contact the Court clerk of administering the auction and pay security deposit and ask for the date and time of the auction and the location of the auction.

Go to the auction prepared to make payment. Requirements for payment vary by Court. Some jurisdictions require the entire winning bid be paid by on the spot, while others require the balance to be paid in a preset period of time ranging from days to weeks.

Bid on the property you wish to buy, but do not exceed your pre-determined maximum price. It’s far better to lose the auction than to overpay for a property.