Through research on foreclosure, auction, short sale, and REO, I've come to understand the difference, but, honestly, with the information I have on the house, I don't know which category the house falls under.
This is what I've been told:
I am making an offer directly to the lender and that the "homeowner" no longer has a say on what is going on. The house already went to auction once before but was taken back by the "homeowner." The auction that was stopped was actually the second auction on the house. Honestly, I don't know exactly what is up with the house; I'm just relying on what my realtor has told me.
We have made an all cash offer with no other offers ever coming in, and the house has been on the market for 17 months.