Auction homes happen right before the bank repossesses it. Before an Irvine home auction takes place, the home is given a notice of default. The auction happens after the borrower has failed to make any payments and is then kicked from the home. The bank then puts the home to a live auction where the starting amount was the remaining mortgage balance. Sometimes they can be a great deal, other times the auction is not attenuated, as the mortgage was under water to begin with (which is why the occupant allowed the foreclosure to happen).
The cost of these homes can fluctuate greatly, being anywhere from several million to just a few hundred thousand, and sometimes even less. The reason for the fluctuation is because of the amount of the mortgage on the home. Banks usually list these homes at the remaining amount owed on the mortgage.