Confusion about foreclosed properties VS REO properties!

[Alex R.]

There are some websites that list properties for sale as Foreclosure.

Meanwhile I read that:

Foreclosures are NOT sold by Realtors. Foreclosure properties are auctioned at a Trustee Sale at the Court House in the County where the property resides. Foreclosure properties must be paid for in full, with a cashiers check at the time of the auction

Aren’t they supposed to be auctioned off at a court house and not in a website?

Or are they actually REO properties that are mistakenly listed as foreclosure?

Here is an example:

http://www.ziprealty.com/property/406-MCKELVEY-AVE-BAKERSFIELD-CA-93308/4914299/detail

[Brian Burke]

Properties become "foreclosure properties" when a notice of default is recorded (in California).

The final step in the foreclosure process is the public auction on the courthouse steps (where the purchase is paid in full at the time of the auction via cashiers checks).

The lender will place the first bid. If no one outbids the lender, the property becomes owned by the lender (REO). At some point after this occurs, the REO will be listed by a real estate agent on the MLS, and may appear on websites for sale.

Right or wrong, the terms "foreclosure" and "REO" are commonly interchanged.