How Does the Sheriff Sale Process Work?

Sheriff's sales are public auctions at which foreclosures are sold. These homes are properties on which the mortgage has not been paid. Since homes are held as collateral for a mortgage, the lender sells a property with a defaulted mortgage at a public sale in order to recoup the money lost on the unpaid loan. In some areas, a Sheriff manages these property sales, which is why these auctions are known as Sheriff's sales.

What is a Sheriff's sale?

For investors, Sheriff's sales offer a great way to make money, since these sales allow investors to buy property at well below market value. For homebuyers, Sheriff's sales offer an opportunity to buy a home at well below cost. The Sheriff's sale offers lots of great opportunities for buying a property, since all types of homes are sold, from commercial real estate to private homes. Properties in every sort of neighborhood are sold as well.

The exciting thing about Sheriff's sales as well is that every property must be sold. Since all the properties have defaulted mortgages, all must be sold for the lenders to receive their money. As with any auction, the property goes to the highest bidder.

Things to consider

If you are interested in buying at a Sheriff's sale, do keep in mind that you will need to have money ready for your purchase. No financing is available at the auction. As well, you will need to do your research carefully before the sale starts. Some homes will be a bargain but some may need extensive repairs. Are homes are sold "as is" so if you find a problem after you buy, you are entirely responsible for the problem.

A Sheriff's sale can mean an astonishing bargain but it can also be challenging, especially for the first-time homebuyer. Luckily, we have made it easy. We have the latest listings of foreclosures and Sheriff's sales across the country, so that you can find out exactly where the best real estate deals in your area are. Plus, we have all the tools and resources you need to buy smart, so that your real estate budget stretches as far as possible.