What do courthouse auctions involve?

Courthouse auctions typically involve the enforcement of liens due to borrower defaults. When a property owner fails to meet the terms of their mortgage or loan obligations, lenders or lienholders may seek to recover their losses through this public auction process. During these auctions, the properties that have been foreclosed upon are sold to the highest bidder to satisfy the debt. This legal procedure allows creditors to reclaim funds by converting the asset into cash, which is critical in cases where the borrower has defaulted.

On the other hand, the other options do not accurately represent the nature of courthouse auctions. Selling properties under market value can occur in various contexts but is not inherently true for courthouse auctions, which follow a strict bidding process. Providing refinancing options is not related to courthouse auctions as they focus on the sale of properties rather than offering financial products. Likewise, facilitating property appraisals is a different function altogether and does not typically occur within the context of courthouse auctions. Thus, the emphasis on the enforcement of liens due to defaults captures the essence of what courthouse auctions are about.