There are two types of foreclosures in the United States: STRICT FORECLOSURES and NON-JUDICIAL. In a strict foreclosure the bank claims title and the property is put up for auction by the sheriff or other county officer. The deed is then issued to the highest bidder.

In the non-judicial foreclosure, the mortgage holder notifies the borrower when there is a default.  If the home owner does not pay or file for bankruptcy, the mortgage holder may issue a notice of default, listing missed payments and amount needed to stop foreclosure, and sell the house at a public auction.  The amount owed is called the reinstatement.  The auction will be listed in the local newspaper.

Foreclosure proceedings and laws may differ from state to state.