Foreclosure auctions in Germany are governed by the Foreclosure Act (ZVG) and conducted by the competent local court. Applications are generally made by creditors holding an enforceable title, most commonly banks following loan default. The court first determines the market value through an expert appraisal. At the auction date, the highest bidder is awarded the property if their bid reaches at least fifty percent of the market value. Proceeds are distributed among creditors according to a legally defined order of priority. For buyers, foreclosure auctions offer the opportunity to acquire properties below market price but carry risks such as limited inspection access, assumption of existing tenancies, and undiscovered defects that must be accepted as part of the purchase.