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What most people don’t understand is that the foreclosure process involves the lien holder exercising their rights to sell the property at public auction (if someone defaults on their loan). When buyers purchase a foreclosure, they are standing in a public area and bidding on a property. If they are the winning bidder on the property, they must provide a cashiers check right then and there. In other words, unless you have cash, you are not buying a foreclosure at the courthouse steps. Also, when a Reno home is purchased at the courthouse steps, you are taking the property subject to priority liens. In other words, and this is based on a true story, you could buy a home for $40,000 at a public auction and there could still be a $300,000 priority lien. If not paid off, they could foreclose on you and you are out your investment. Read the next paragraph.