When a homeowner is facing financial difficulties and is at risk of foreclosure, they may seek an appraisal to determine the current market value of their property. This can help them understand their equity position and potentially explore options such as refinancing, selling the property, or negotiating with the lender to avoid foreclosure.

Once a property has been foreclosed upon and is being prepared for sale by the lender or at a foreclosure auction, an appraisal may be conducted to determine the property's market value. This appraisal is often used by the lender or auctioneer to set a minimum bid or listing price for the property.

In both cases, the purpose of the appraisal is to establish the fair market value of the property. This value is typically determined by considering factors such as the property's condition, location, size, comparable sales in the area, and any unique features or issues that may affect its value.

It's important to note that in foreclosure situations, the appraisal is often ordered by the homeowner or the lender, rather than the potential buyer. The appraisal helps inform decisions related to the foreclosure process, such as loan modifications, short sales, or determining an appropriate listing or auction price for the property.