Foreclosure proceedings are the primary cause of real-estate auction sales in the US. Given the added legal constraints and risk associated with foreclosure proceedings, it is an empirical question as to whether the resulting prices are a function of the usual underlying factors of physical characteristics, locational benefits and neighbourhood effects which motivate normal market sale pricing. Using a hedonic pricing model common in the analysis of market sale prices, we find systematically determined price behaviour which replicates market pricing
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