A sheriff’s sale is the final process of your foreclosure proceedings via judicial foreclosure. There are many stages in the foreclosure process that a homeowner in default goes through before the sheriff’s sale. When a mortgage loan borrower is in a default of his or her mortgage because they are unable to pay their mortgage payments, the mortgage lender files for foreclosure. The mortgage lender files for judicial foreclosure in order to get a court order by a judge which allows the mortgage lender to sell their collateral to satisfy the mortgage the borrower owes them. The county sheriff’s office then executes this court order. The sheriff’s sale is the final process of the foreclosure proceedings.
Process Of The Sheriff’s Sale: Timeframe
As mentioned earlier, the sheriff’s sale is the final stages of the foreclosure process. A sheriff’s sale only happens after the foreclosure court trial. There is a long process prior to the sheriff’s sale. The Lender first files a lawsuit to foreclosed on the defaulted mortgage loan borrower and needs to prove that the mortgage loan borrower is in default of the terms of his note. This process can take six or more months and once the mortgage lender wins the right to foreclose, then the final process is the sheriff’s sale.
The Objective Of The Sheriff’s Sale
The way the mortgage lender collects their money is from the sale of the subject property from the sheriff’s sale. The subject foreclosed property gets sold at the sheriff’s sale and the proceeds are forwarded to the mortgage lender. Any extra proceeds left over from the sheriff’s sale goes back to the mortgage loan borrower. This is when your name get transferred out of the title to the home and when your mandatory waiting period starts for you to qualify for another mortgage loan. FHA guidelines mandate that you wait 3 years from the date of the sheriff’s sale to qualify for another mortgage loan.
Sheriff’s Sale Is A Property Auction
A sheriff’s sale is an auction that the public is invited to. The public is welcomed to bid on your property as well as other properties that are on that day’s public auction roster. People are notified of the sheriff’s sale by public notice that is published in local newspapers at least 20 days prior to the public auction. The county sheriff will order a deputy sheriff to post a foreclosure notice at the subject property that is being foreclosed.