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

In Massachusetts, a foreclosure auction and a sheriff sale are two different ways a homeowner can lose their home due to an inability to pay their mortgage debt. A foreclosure auction is when the homeowner and mortgage lender agree to a scheduled auction by a court-appointed trustee. The trustee will then find investors that are interested in buying the property and the foreclosure auction then takes place. The highest bidder at the auction gets the property. A sheriff sale is when the homeowner has not been able to meet their mortgage payments and the lender will need to recoup the loan amount which they lent to the homeowner. The lender then requests for the property to be sold in a public auction. The auction is conducted by the sheriff’s office and the highest bidder is given the title at the end of the auction. The main difference between these two types of foreclosure is that the homeowner does not get the money from the sale at the foreclosure auction as it goes to the lender. Whereas at the sheriff sale, the money is given to the homeowner after the sale. The homeowner may also be able to set up a redemption period before the home is officially sold at the sheriff sale. This period allows the homeowner to pay back the loan amount and reclaim the property. In conclusion, the difference between a foreclosure auction and a sheriff sale is that the money from the foreclosure auction goes directly to the lender while the homeowner may be able to get some of the money in a sheriff sale.

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

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