
A real estate foreclosure occurs when a homeowner defaults on their mortgage loan. The lender, after filing the appropriate documents in court or with the city, then has the right to pursue a foreclosure by auctioning off the homeowner's property to the highest bidder. A real estate foreclosure auction presents a unique opportunity for a homebuyer or an investor to purchase property at a lower price than it would sell for on the market. If you can find them, foreclosure auctions are the best places to find good real estate investments being sold at low prices.
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