System and method of auctioning a defaulted loan

A method of auctioning a property, the method comprising the steps of:

• identifying, by the processor, property owners remotely connected to a computer network by utilizing a computer station whereby the property owners are willing to sell their property by an online auction;
• providing, by the processor, a database to compile information on properties and property owners;
• the database having at least contractual information, whereby a property owner enters into contracts and the terms of which obligates them to complete sale of their respective properties;
• the database further has relevant information relating to the property, including property information pricing and secured promissory note and related documents;
• limiting, by the processor, bidding to bidders who have proven sufficient resources to complete the transaction;
• conducting an auction for the secured promissory note whereby at the auction's conclusion there is a winning bidder;
• arranging, by the processor, for the delivery of the original secured promissory note, its security instrument (trust deed or mortgage), the documentation supporting the value of security of the secured promissory note (appraisal), and evidence of ownership (title insurance) to a licensed escrow holder, who at the conclusion of said auction will deliver evidence of ownership of the original secured promissory note and related documents to the winning bidder and the appropriate proceeds to said note owner;
• and
• ensuring, by the processor, the transfer of the winning bidder's purchase funds to the escrow holder.