What type of auction is usually held for properties foreclosed due to mortgage and tax nonpayment?

The correct answer focuses on the specific setting in which properties that have been foreclosed due to mortgage and tax nonpayment are typically sold. A courthouse auction is conducted at a courthouse and is specifically designated for foreclosed properties. This method adheres to legal proceedings aimed at recovering owed debts to lenders or the government, particularly for unpaid taxes.

In a courthouse auction, the properties are usually sold to the highest bidder, and these events often attract various buyers looking for investment opportunities. The process is officially sanctioned, and the auction itself is part of the public record, allowing transparency regarding the property sale.

Other types of auctions listed, such as bank auctions or government auctions, may encompass a broader array of property types and situations but do not specifically reference the courthouse setting which is directly tied to foreclosures. A real estate auction typically involves properties listed by owners or agents and not specifically those repossessed by lenders or taxes owed to the government. Thus, while all these auction types may deal with real estate, courthouse auctions are particularly aligned with the context of foreclosures.