The local laws governing foreclosure sales is available in all public libraries. Here we will talk about the rules of the game in California. In most English speaking places the rules are similar.
The foreclosure process is a process where after a default in loan payment a secured creditor (i.e. one having lien against real property) can force the sale of real property previously pledged as security. The sale in good times is expected to generate the money to pay off the loan due the creditor. The most common security device used in California is a deed of trust. Basically, the borrower deeds the property to the lender but the lender can’t take occupancy or clear title unless the borrower doesn’t pay. A trust deed may be called something else in other countries.