What do courthouse auctions involve?

Courthouse auctions primarily involve the enforcement of liens due to borrower defaults. This process occurs when a property owner fails to meet their mortgage obligations, resulting in lenders taking legal action to recover the owed amounts. During a courthouse auction, the foreclosed property is sold to the highest bidder, typically starting at a price that covers the outstanding lien and associated costs. This setup serves both the lender seeking repayment and the borrower facing foreclosure, as it provides an opportunity for the property to be sold to recover losses.

Negotiated sales involve the mutual agreement between a buyer and seller on the property's price and terms, which is not the basis of a courthouse auction. Private bidding typically pertains to exclusive, upscale properties and does not share the essential characteristics of a public auction process. Standard real estate closings refer to the finalization of a property sale involving a buyer and seller and do not involve the auction format inherent in courthouse procedures. Thus, the options provided indicate processes distinct from the foreclosure system represented by courthouse auctions.