Whats the difference between a foreclosure and a absolute auction?

Answer 1

In an absolute auction, the house (or whatever) is auctioned off, period. You can not have reserves or anything else.
In a foreclosure, you are incapable of meeting the payments; the lender forecloses, meaning they take the house back, will sell it by whatever means, and you have to pay the balance (that is, the difference between what you originally agreed to pay through a mortgage and what they recover through reselling).
Of course, details will vary according to the state you live in.

Answer 2

A foreclosure is the action taken by a mortgage holder to take back the real property it held as a security for a loan. It starts with a 90 day notice of default, and if the loan is not made current, proceeds to a notice of sale.

An auction of real estate is either by a seller or by a lender after it has foreclosed. Absolute means that any price over a minimum will be accepted.

Answer 3

If you are looking at it from a buying perspective -

I think a foreclosure means the bank puts a minimum amount on the house for selling. An absolute auction means that there is no minumum bid.

Answer 4

Foreclosure is the sale of loan collateral, in this question, real property. An auction is just one way of selling something. In this one there would be no reserve or minimum price.