When a property is foreclosed upon, its because the owner failed to make the necessary mortgage payments on the property. So, the lender is essentially trying to regain the money that was still owed to them. This works in the favor of those attending auctions with foreclosed-upon properties because the lender will often accept a lower than market value offer, simply because this offer covers the debt that they were owed, so everything else above that is profit. This is an ideal way to purchase a commercial property at a reduced price.
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