The day of auction there are a couple of things that can happen. If there is no winning bid from a viable buyer that pays the minimum about the bank is looking to yield then the bank basically takes possession of the property and it added to their Bank Owned portfolio. A Certificate of Title is issued to either the buyer or the bank, depending on who gets the property. The issuance of the Certificate of Title can take a few weeks as the current home owner is allow a timeframe in which to reinstate the defaulted mortgage. Should the home owner fail to reinstate the loan, the holder of the Certificate of Title is the new property owner.
Since your question does not indicate if you are a buyer looking to purchase a property at auction or a home owner that is in default, the answer needs to be kept rather general in nature. Should you have any additional questions please feel free to contact me.
Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty