What Does Sheriffs Sale Mean In Home Foreclosures

What Does Sheriffs Sale Mean In Home Foreclosures

This BLOG On What Does Sheriffs Sale Mean In Home Foreclosures Was UPDATED On January 20th, 2018

A sheriffs sale is the final process of 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 their 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 And Timeline Of The Sheriffs Sale

As mentioned earlier, the sheriff’s sale is the final stages of the foreclosure process.

  • A sheriffs sale only happens after the foreclosure court trial
  • There is a long process prior to the sheriffs 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 sheriffs 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 sheriffs 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 homeowners name get transferred out of the title to the home and when mandatory waiting period starts to qualify for another mortgage loan
  • FHA guidelines mandate borrowers wait 3 years from the date of the sheriff’s sale to qualify for FHA Loans
  • VA Loans require a two year waiting period after Sheriffs Sale to be eligible for VA Home Loans
  • USDA requires a three year waiting period

Sheriffs Sale Property Auction

A sheriffs sale is an auction that the public is invited to.

  • The public is welcomed to bid on the 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

Qualifying For Mortgage After Sheriffs Sale

Home Buyers can qualify for mortgages after bankruptcy and foreclosures. Home Buyers who need to qualify for mortgage after bankruptcy and foreclosure with a five star national direct lender with no mortgage lender overlays on government and conventional loans can contact us 7 days a week at The Gustan Cho Team at USA Mortgage at 262-716-8151 or email us at gcho@usa-mortgage.com.  We are available 7 days a week, evenings, weekends, and holidays.

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