Any property seized by the Government during a criminal investigation or in order to pay off pending debts of the defendant via a court order is generally put on auction to realize funds to pay off pending dues. This could either be a home or a vehicle that the lender repossesses because the borrower failed to pay off mortgage and the process is called foreclosure. The money realized from such auctions is paid off to creditors only when all taxes, encumbrances and liens are met first.

* Auctions conducted by the US Federal Government are held according to federal statutes which stipulate that there are no time limits on the agency auctioning off the property to the actual owner. The person whose property is being auctioned off can claim to get his property back only if he posts a bond worth ten per cent of the value of the property that has been seized and put on the auction block.

* Various states in the US also hold Sheriff/ Police Auctions at the local and state levels. This is mostly done to realize pending taxes from a defaulting taxpayer and leaves the authorities no other option but to forcibly seize such a property. However, there are legal provis
ions for the property owner to contest this forced forfeiture. Such auctions may also be held with properties where a criminal act has been committed or has been wilfully abandoned. These government auctions are held almost daily in every US state.

* All seized properties, be they land and buildings, cars, trucks, bicycles, gold jewellery and even diamond rings or other luxury items are purchased by the highest bidder as in any other auction. A Public Auction Surplus notice is published in all local newspapers with full details of all items, venue of auction and time. Usually one location is selected for selling off the largest number of goods. Certain states also allow their police departments to hold their own auctions to sell off seized properties and to keep the sale proceeds for themselves.

* The pre-auction procedure includes recording the seized property at a fair-market value estimate i.e the value of the property when it was seized. However, all these properties are checked for prior liens if any and a list of those standing to benefit from it is also prepared.

The enforcement agency also reserves the right to retain a seized property for its own official use unless the situation is such that it has to be demolished or destroyed.