On the day of the foreclosure sale, a representative of the lender will stand on the courthouse steps and announce that the auction is proceeding. Most of the time, he or she will be the only person present. Sometimes there is a small group of interested bidders. The lender’s representative will then usually read the foreclosure ad and ask for bids.
Even if it is pouring down rain and no one else is present, the representative will look around expectantly. After a few seconds, he will announce what is called the credit bid. That is the amount the lender agrees to credit the loan in return for receiving a deed. There might be other bids, or there might not. The auctioneer announces the winning bidder and the sale price. Then everyone goes back to the office, where people prepare deeds and exchange money.
Even if you are not yet ready to buy any particular property, start going to local foreclosure sales or other creditor auctions. You will gain a sense of the players involved and the local etiquette regarding how things are done. This is all good information to know before it becomes real for you with your own purchase