What Happens at a Sheriff Foreclosure Sale?

Understanding a sheriff foreclosure sale.

A sheriff foreclosure sale takes place for two basic reasons. A sale is designed to sell real estate after a mortgage foreclosure action, and a sale is conducted after a tax lien foreclosure. If you are interested in bidding at a sheriff foreclosure sale, you need to understand what happens at such a sale.

Function

A sheriff foreclosure sale is for real estate only. Although a sheriff is responsible for selling other type of property--automobiles, for example--this is not done through a foreclosure sale.

Types

There are two common types of sheriff foreclosure sales. Open auctions involves bidders gathering in one place and making public bids. Sealed bid auctions are those in which bidders submit bids in writing to the sheriff's department on a designated date and time.

Registration

Bidders at an open auction, and at some sealed bid auctions, register in advance with the sheriff's office.

Payment

The winning bidder is expected to pay the amount bid on the day of the auction, unless other pre-approved arrangements are made.

Sheriff's Deed

Upon making the bid payment, the sheriff gives the winning bidder what is known as a sheriff's deed. The sheriff's deed does not necessarily give you clear title to the real estate. You need to satisfy any other liens on the property in addition to the lien for the foreclosed mortgage or past due taxes.

References

• Dane County Sheriff's Office (Florida): Foreclosure Sales
• "The Complete Guide to Locating, Negotiating, and Buying Real Estate Foreclosures"; Frankie Orlando; 2008
• Mercer County (New Jersey): Sheriff Foreclosure Sale

Resources

• Kane County Sheriff's Office (Illinois): Foreclosure Sales