What is the difference between a foreclosure auction and a sheriff sale?

Foreclosure auctions and sheriff sales are two similar yet distinct processes for handling delinquent mortgages in Hawaii. A foreclosure auction, also called a trustee sale or foreclosure sale, is a public auction administered by a third-party trustee, usually a real estate broker or an attorney. The trustee is appointed by the lender to conduct the auction. At the auction, the home is sold to the highest bidder, usually for the amount of the delinquent mortgage plus legal and administrative fees. The proceeds of the sale first go to the lender, then to any other lien holders, and the remaining proceeds, if any, go to the homeowner. A sheriff sale, on the other hand, is a public auction held by the county sheriff. The sheriff is appointed to auction off the property in order to recover unpaid taxes or delinquent payments. The property is sold to the highest bidder and the proceeds are used to pay off the debts owed. Both foreclosure auctions and sheriff sales are used to reclaim properties with delinquent mortgages in Hawaii. The main difference is that a foreclosure auction is used to pay off delinquent mortgage payments and other associated fees, while a sheriff sale is used to pay off delinquent taxes or payments owed to the county. The proceeds from both auctions go to the lender first, then to any other lien holders, and finally, to the homeowner.

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What is the difference between a foreclosure auction and a sheriff sale?

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