Florida Real Estate License Renewal Practice Test 2025 - Free Real Estate Renewal Practice Questions and Study Guide

The auctioning of properties due to borrower defaults on debts, such as property taxes, typically occurs through a system known as a Courthouse Auction. This process is overseen by public officials, often at a designated courthouse, where properties that have been foreclosed upon are sold to the highest bidder. The goal is to recover funds owed to the government or to creditors, making it a transparent and regulated environment for such sales.

While foreclosure auctions do occur, they are specifically related to mortgage defaults rather than debts like property taxes. Private auctions, on the other hand, are not typically used for defaulted properties, as they lack the public oversight and regulatory framework. Online auctions have gained traction in recent years, but they primarily serve different types of transactions and are not the standard for tax default properties. The Courthouse Auction remains the traditional and legal setting for these types of property sales.