Final answer:
Foreclosed properties are sold at public auction in order to recoup the outstanding debt owed by the homeowner to the lender or bank.
Step-by-step explanation:
Foreclosed properties are sold at public auction in order to recoup the outstanding debt owed by the homeowner to the lender or bank. When a homeowner defaults on their mortgage loan, the lender has the right to take possession of the property and sell it to recover the money owed. Public auctions provide an opportunity for potential buyers to bid on the foreclosed properties and the highest bidder becomes the new owner.