During a foreclosure, a property typically goes to a foreclosure auction. As the holder of a first position loan, PeerStreet sets the minimum bid price at the auction. In preparing our opening bid, PeerStreet takes into account, among other factors, the principal balance of the loan, accrued interest and late fees, foreclosure-related expenses, updated valuation of the property, etc. If a third party outbids PeerStreet at the auction, investors will receive their pro rata share of the sale proceeds accordingly.