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

In Virginia, the terms “foreclosure auction” and “sheriff sale” are often used interchangeably. However, there are subtle differences between the two. A foreclosure auction is a sale of a property that is owned by a lender, such as a bank, to recover money that has been owed to them. This is usually done when the borrower has defaulted on their loan. The sale is conducted by a court-appointed trustee and is open to the public. The highest bidder at the auction will win the property. On the other hand, a sheriff sale is the sale of a property that is owned by the borrower. It is conducted by a sheriff or other law enforcement officer. The proceeds from this sale are used to pay off the lender’s loan. In both cases, the lender has the right to bid on the property and take it back if the price is lower than the amount of money that is owed. Additionally, in both cases, there may be other creditors that need to be paid before the borrower. These creditors might bid on the property in order to get their money back. Overall, a foreclosure auction is a public sale of a property owned by a lender to recover money owed to them by the borrower. A sheriff sale is the sale of a property owned by the borrower to pay off a lender’s loan. Both have similar processes, but slight differences that should be noted.

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

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