How does it feel when a police officer will visit in your house and tells you that you are no longer its owner? It must be painful knowing that your property has been foreclosed. The concept of foreclosure needs to be understood and must be given a good attention. Knowing its consequences will tell you that knowledge is necessary.
Mortgage agreement can be a primary reason why a certain property is foreclosed. The asset is (by virtue) the financial security to assure the lender that the debtor has the ability to pay the credit. Delinquent taxes can be another reason on foreclosure too. Tax is compounded with penalties because the owner doesn't pay and the government will find a way how to accumulate money to sustain its services and deficits. Back taxes are added with fines and interests. Properties that have reached the crucial point will be foreclosed. Foreclosed homes for sale are then tagged with price and brought to auctions. Auction is defined as a market where the highest bidder the one who can get the item on sale. The starting bidding amount is predetermined before the bidding will start. Technically anything can be sold in an auction. Assets like homes, land, cars are the common participating stuff in the sale. In the case of tax foreclosed property auctions, the owner can not participate in the bidding process. Laws on the states may differ in the treatment on the problem of foreclosed properties. The bottom-line is you've lost your property. The bidders will have a feast in the properties of others. This attracts investors because auctions start on a reasonable prize. Being responsible to your financial liabilities is the only key to avoid your property facing problems (that originally can be evaded).
The most important thing you can do is to have information regarding your county's own statutes about taxing. Ask questions and do not be ignorant about taxing. Information is a commodity.