Gustan Cho The Mortgage Expert,
Publish On: April 3, 2019
This BLOG On What Does Sheriffs Sale Mean In Home Foreclosures Was UPDATED On April 3rd, 2019
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 borrower is in default of their mortgage because they are unable to pay their mortgage payments, the lender files for foreclosure
- The lender files for judicial foreclosure in order to get a court order by a judge which allows the 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 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 lender
- Any extra proceeds left over from the sheriff’s sale goes back to the 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
- Fannie Mae and Freddie Mac requires a four year waiting period after a short sale or deed in lieu to qualify for conventional loans
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 Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.
