jeeman typically hard money lenders will lend on about 60% of the “value” of the home. Thus it is not out of the question that you could indeed get a loan from a hard money lender, purchase the home at auction and refinance it with a conventional mortgage and pay off the hard money loan.

Note I am not recommending you do that, because everyone conveniently oversteps the risks with purchasing a home at trustee sale. However if you do it right, you can save a hell of alot of money.