Sheriff's sale, which is a public auction, real estate that has been repossessed after the owner has defaulted on their payments is sold. Mortgage lenders, banks, tax collectors, and other litigants who have lost money on the property will be paid out of the proceeds from the sale using the proceeds from the sale.
What is Sheriff’s Sale


When the original property owner is unable to keep up with their mortgage payments and the foreclosure process has reached its conclusion, the sheriff will sell the property at auction. They may also take place to satisfy a judgement or tax lien that has been ordered by a court.

• Defaulted or repossessed properties are put up for auction at the conclusion of the foreclosure process at what is known as a sheriff's sale.

• The general public has the opportunity to place bids on the seized property, which is typically offered for sale in its current state.

• Lenders of mortgages, banks, tax collectors, and other claimants will be repaid with the proceeds from the sale.

• A sheriff's sale might take place in order to comply with a court order that was issued against a lienholder.

How a Sheriff’s Sale Works

Only after the lender has informed the borrower of the default and given the borrower an opportunity to make up missed mortgage payments will the lender proceed with an auction of the property through the sheriff's department. The purpose of the auction is to ensure that the lender is repaid as quickly as possible for the loan that is currently in default.

Because they are typically held on the steps of a city's courthouse and are overseen by the authorities in charge of maintaining order in the area, these auctions are known as sheriff's sales. Notices of each auction can be found in local newspapers and on a variety of online venues. The property is auctioned off to the highest bidder at a place, date, and time that have been made publically known to the public.

You need to have a fundamental knowledge of mortgages and the steps involved in the foreclosure process before you can comprehend the procedures that come before a sheriff's sale. A mortgage is a form of secured debt, meaning that the loan is backed by a particular piece of property known as collateral. The borrower is responsible for meeting his or her obligation to repay the loan on time, which includes making the number of interest and principal payments that were agreed to in the loan contract.

In turn, homeowners take out mortgages so that they can leverage a significant portion of the cost of their home that they are unable to pay in full up front. The buyer pledges the property to the financial institution as security for the loan. In the event that the mortgage payments are not made on time, the financial institution that provided the loan has a right to the property.


When a homeowner falls behind on their mortgage payments, a legal process known as foreclosure can take place. This involves the property that was pledged as security in the mortgage document being sold to pay off the debt. After this, ownership is transferred to whoever is currently in possession of the mortgage or to a third party who has now acquired the property through the process of foreclosure.

Local law enforcement is responsible for carrying out the necessary steps to enforce foreclosures, which may include evictions related to the property. Both the sheriff's office and the banks don't have any interest in keeping a house, and the banks don't want to get into the business of being landlords. As a result, auctions take place in a very short amount of time after the foreclosure process has been completed.

A tax authority is another party that has the ability to start the foreclosure process. Tax liens can be placed on real estate by the federal government, municipalities, and other tax authorities in the event that income and property taxes are not paid when they are due. Putting a lien on a piece of property gives the person who does so a claim to that piece of property. In the event that these liens are not paid off, the tax authorities have the ability to pursue the unpaid debt through the judicial system and the foreclosure process.

Even after the property has been sold at auction, the owner of a property that has fallen into default typically retains the right of redemption, which allows the owner to reclaim the property by paying off the lien and any other costs associated with it in full. However, the law in each jurisdiction is different in this regard.

Special Considerations

If the property is sold through a regular foreclosure auction, the lender is typically selling a property that it repossessed on its own and is selling through the auction. On the other hand, if the property is going to be sold at an auction by the sheriff, the foreclosure cannot go through without first receiving permission from the court. As soon as the financial organization or taxing authority is in possession of a judgement, the court will issue an order to the sheriff's office instructing them to sell the property at auction.

Even after the auction, the owner of the defaulted property in many states has the opportunity to reclaim the property by paying off the entire amount of the lien as well as any other costs associated with it. This law, which is known as the "right of redemption," varies from state to state and even from county to county and municipality to municipality.