Which auction system deals with the enforcement of liens due to borrower default?

The correct answer focuses on the specific auction system known as a Foreclosure Auction, which is directly associated with the enforcement of liens when a borrower defaults on their mortgage or loan obligations. In this scenario, the property that has the lien is sold to recover the owed amount.

During a Foreclosure Auction, the lender or bank has the legal right to sell the property at auction in order to satisfy the debt, effectively transferring ownership from the borrower who has defaulted. This process typically follows a legal procedure that includes notifying the borrower of the default, offering them opportunities to rectify the situation, and ultimately proceeding to auction if the debt remains unpaid.

Other auction types, like Online, Courthouse, or Public Auctions, may encompass a variety of property sales but do not specifically target the process of dealing with liens and defaults. The uniqueness of the Foreclosure Auction comes from its legal grounding in debt recovery, which sets it apart from general property auctions.