why would an attorney buy a sheriff sale

A sheriff sale is a public auction of property repossessed to satisfy an unpaid obligation, and it's generally done because a mortgage lender repossessed the property and is trying to sell it. However, a sheriff sale also can be held for properties seized to satisfy judgment liens or tax liens. Click to see full answer

Full Answer

What is a sheriff's sale?

Jan 03, 2018 · A Sheriff’s Sale does not occur until after a lender files a foreclosure lawsuit. If you choose to fight the foreclosure complaint, your case will proceed through a trial. A trial is not required or necessary, however. Most people do not fight or answer the foreclosure complaint, in which case it defaults in the lender’s favor. The proceeds of the sale go to the lender to repay …

Is buying foreclosure at a sheriff sale a good idea?

Joseph Allnutt // February 25, 2021 Deal-seeking investors and homebuyers go to a Sheriff Sale to buy a foreclosure property at auction because, often, the purchaser can buy the property at a good value. Sheriff auctions are open to the public and are generally held in-person on local courthouse steps.

What should I be prepared for when buying a sheriff sale?

May 17, 2020 · A sheriff sale is a public auction of property repossessed to satisfy an unpaid obligation, and it's generally done because a mortgage lender repossessed the property and is trying to sell it. However, a sheriff sale also can be held for properties seized to satisfy judgment liens or tax liens. Click to see full answer

When does a sheriff have to serve notice of sale?

Jun 08, 2020 · The Sheriff's Sale can be delayed up to one hour before the bidding at a foreclosure sale. The common technique to delay a Sheriff's Sale is to convince the foreclosing mortgage lender to request it. In many cases, though not all, a lender will delay a Sheriff's Sale to allow a short sale to reach settlement.

What does notice of sheriff's sale mean?

A sheriff's sale is a public auction at which property that has been defaulted on is repossessed. The proceeds from the sale are used to pay mortgage lenders, banks, tax collectors, and other litigants who have lost money on the property.

How does a PA sheriff's sale work?

Every County in Pennsylvania conducts periodic sheriff's sales of real estate. They may be every month or every few months. The sales are conducted in an auction format with open bidding. The properties at sale are being sold at the behest of a creditor attempting to recover money owed.Oct 31, 2014

How do you win at sheriff sale?

Follow these steps to ensure you research the properties thoroughly:Perform a title search. ... Locate properties. ... Evaluate the properties. ... Inspect the property. ... Calculate your profit potential. ... Determine your maximum bid amount. ... Phone ahead. ... Attend the auction.More items...

What happens after sheriff sale in PA?

After the Sheriff's Sale, you have the right to challenge the sale under very limited circumstances. If you do challenge the sale, you must file a Motion to Set Aside the sale before the Deed is transferred by the Sheriff to the buyer or the mortgage company. By law, the Deed cannot be transferred for 21 days.Nov 5, 2014

What is a sheriff's sale?

A sheriff’s sale is a public auction at which property that has been defaulted on is repossessed. The proceeds from the sale are used to pay mortgage lenders, banks, tax collectors, and other litigants who have lost money on the property. 1 . Sheriff's sales happen at the end of the foreclosure process when the initial property owner can no ...

What happens at the end of foreclosure?

Sheriff's sales happen at the end of the foreclosure process when the initial property owner can no longer make good on their mortgage payments. They can also occur to satisfy judgment and tax liens ordered by a court.

What is foreclosure in mortgage?

A foreclosure is a legal act in which the property used as collateral in the mortgage document is sold to satisfy the debt when the owner defaults on the mortgage payments. Ownership is then passed to the holder of the mortgage or a third party that has now purchased the property at a foreclosure sale. 2 .

Who is James Chen?

James Chen, CMT, is the former director of investing and trading content at Investopedia. He is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is an Accounting and Finance Professor with a passion for increasing the financial literacy of American consumers.

Can foreclosure take place without a court order?

However, if the property is to be auctioned off through a sheriff’s sale, the foreclosure cannot take place without authorization from a court.

What is a sheriff's sale?

What Is A Sheriff’s Sale? A Sheriff’s Sale is a public auction of a property that has been repossessed through court-ordered means. The property is typically repossessed by a mortgage lender at the end of a foreclosure, but it can also be seized to satisfy judgements or tax liens.

What happens after a home is sold?

After the sale you have no right or title to the home and you will be notified of the date by which you must leave the property. As the owner of the property, you can take steps at any time prior to the sale to halt it and keep your home. You also have options for a brief period after the sale.

How to manage a foreclosure?

The first step in managing a foreclosure is to understand where you are in the process. Often there are steps that banks can take to help you get through a difficult financial situation so you can get caught up on your mortgage.

How many types of bankruptcy are there?

The short answer is: maybe. There are two types of bankruptcy that individuals file; Chapter 13 and Chapter 7. Each has its own requirements and complexities so speak to a bankruptcy attorney about your options.

How long do you have to pay back a foreclosure?

The price is set by the lender, and if nobody agrees to pay it, then the lender will buy the property back. You are, however, entitled to a 10-day right of redemption period after the sale. If you can pay the full amount due plus the costs of the foreclosure during that period, then you can reclaim the property.

Can you fight a foreclosure lawsuit?

A Sheriff’s Sale does not occur until after a lender files a foreclosure lawsuit. If you choose to fight the foreclosure complaint, your case will proceed through a trial. A trial is not required or necessary, however. Most people do not fight or answer the foreclosure complaint, in which case it defaults in the lender’s favor.

The Facts About Sheriff Sales

There are several kinds of properties that you might find at a sheriff sale. It is common to find single and multiple family homes, commercial properties, mixed-use properties, and larger complexes. Basically, any property that might have had a mortgage can be found at a sheriff sale.

Is Your Property At Risk of Foreclosure?

If your property at risk of foreclosure? It might be a good idea to hire a foreclosure attorney. If you have a defense such as a serious error made by the servicer or the inability for the foreclosure party to prove that it owns your loan, a foreclosure attorney can help you.

1. Investigate the property

Do your research on your desired property. Know where it is, whether someone currently lives in it, and the general condition of the property.

2. Get practice

If you have time, consider going to a sheriff’s sale as an observer. That way, you can get a feel for the flow, the process, and what is required of bidders. Then when you are ready to bid on a property, you are experienced at the auction format.

3. Be prepared for surprises

Unlike other methods of real estate transactions, properties sold at sheriff’s sales, judicial tax sales, and the upset tax sales are sold as-is. There will not likely be an opportunity for an inspection or walk through of the property.

4. Consider existing residents

If there are residents currently occupying the property, you inherit these residents and their removal may require you to bring a separate civil action in ejectment.

6. Hire an experienced attorney

Since properties are sold as-is, there is no guarantee that the property has a clean title. In addition to the bank holding the mortgage, there may be additional judgments, liens, and other claimants to the property’s title.

How long does it take to get a sheriff's sale?

How long it takes to proceed to a sheriff’s sale depends on state law, but in many cases, it may take six months to a year.

What is pre foreclosure?

Pre-foreclosure is the initial step in the foreclosure process. When the lender sends a default notice to the homeowner, the borrower is generally two to three months behind in his mortgage payments. The homeowner may decide to sell the house or make an attempt to work out a settlement with the lender. The lender may postpone a sheriff’s sale ...

Do real estate agents work with banks?

These agents often work with banks that want to avoid the costly foreclosure process. A real estate agent should know the "comps" for homes in the neighborhood, which you would otherwise have to research for yourself. While working with a real estate agent to find a pre-foreclosure is probably the easiest route, it’s not the only one.

Can someone else's loss be your gain?

Someone else’s loss can be your gain. Homeowners who can’t keep up with their mortgage payments are at risk of losing their homes at a sheriff’s sale, so they are motivated to sell them before that occurs. Before starting your hunt for a house heading for a sheriff’s sale, make sure you have your financing preapproved by a lender beforehand.

Alex Bezu

Regardless of what it means, the bank still can resume foreclosure at any time. But under your facts, it sounds like the chance is low. Congrats! You have $0 rent property.

James W. Zerillo

It's hard to know why the sale was cancelled and not rescheduled.Maybe the bank assigned the mortgage,maybe your wife's ex's chapter 7 had something to do with it.Maybe the mortgage arrearage was paid by your wife's ex so that he could re-instate it and assert a claim to the house since he's still in title.The mortgage won't go away just because the bank decided to cancel the sale.It will still operate as a lien....

Robert John Carey

There is no rhyme or reason why some properties do or do not go to sheriff sale, but unless the case was ended by the lender with prejudice, there is still a mortgage and still an enforceable judgment.