An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve.
That means there may not be any limiting conditions such as a minimum bid or hidden reserve price. The auctioneer may not bid for himself at an absolute auction, it is unethical and illegal.
Foreclosure auctions are generally not absolute due to the 'New Deal Era' regulations that govern how foreclosure auctions are conducted.
December of 2008 saw 6,100 homes per day "sold" at public foreclosure autions.
Did you know professional auctioneers are locked out of the foreclosure auction process due to 'New Deal Era' great depression laws that have not been updated since the 1930's.