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

In Texas, a foreclosure auction and sheriff sale are two different processes for selling a foreclosed property. A foreclosure auction is when the lender (such as a bank) puts the foreclosed property up for bidding, and a successful bidder pays the lender the entire amount owed. This amount is typically higher than the original mortgage amount, because it includes any unpaid interest or late fees. A sheriff sale, on the other hand, is when the foreclosed property is sold to the highest bidder, with the proceeds going to pay off the mortgage debt. This is usually a less expensive option than a foreclosure auction, since the lender does not receive any of the proceeds and the property is typically sold for much less than the total debt owed. However, the buyer also does not get to transfer the deed to the property until the debt has been fully paid off. In summary, a foreclosure auction involves bidding on a property owed to a lender, while a sheriff sale involves bidding on the property with the proceeds going to pay off the debt. The main difference is that, in the case of a foreclosure auction, the lender receives the full amount owed, while in a sheriff sale, the lender does not get any of the proceeds and the property is sold for much lower than the debt owed.

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

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