: A study published in PMC - NIH finds that foreclosures have a significant negative impact on the listing prices of nearby homes, with prices within 150 meters dropping by roughly 1.1%.
: Some papers, such as one from the University of Chicago , investigate how the difference between judicial and non-judicial foreclosure laws across states affects economic outcomes and price recovery. Legal & Due Diligence Guidelines
Research often focuses on how foreclosure auctions affect local housing markets and the subsequent use of those properties: buying a home at a foreclosure auction
: Research from the Cleveland Fed distinguishes between "supply effects" (increased inventory lowering prices) and "disamenity effects" (blight from vacant homes lowering prices), noting these vary based on neighborhood vacancy rates. Bidding Dynamics & Information Asymmetry
Papers intended for legal or real estate practitioners emphasize the unique risks of these transactions: : A study published in PMC - NIH
General Information About Real Estate Purchases at Foreclosure Sale
: Legal guides from organizations like LawInfo and RASM warn that many liens—such as IRS tax liens, child support liens, or superior mortgages—may not be extinguished by the auction. Bidding Dynamics & Information Asymmetry Papers intended for
: A paper on ResearchGate notes that banks often have superior information regarding property quality compared to individual bidders because they conducted appraisals before the original mortgage was granted.