If you don't win the auction after securing auction finance, the pre-approved funds typically remain with the lender, and you are not obligated to proceed with the loan. It's important to check the terms and conditions of your pre-approval or agreement with the lender, as there may be expiry dates for the pre-approved finance or fees for the arrangement of the finance that may not be refundable. Communicating with your lender or broker about the auction outcome as soon as possible is advisable.