How does sheriff auctions work

Notwithstanding the local distinctions between the sheriff sale process in New Jersey from county to county, in the context of all New Jersey sheriff sales the relevant properties are sold subject to the first mortgage on the property, if applicable, which typically takes the form of the first lien on the property.

Furthermore, such a sale in New Jersey is subject to any local, state or federal liens. Given the possible existence of these liens or other liens, a title search is typically run prior to bidding to determine the manner and extent to which the property is encumbered by liens.

This strategy is employed for the purpose of protecting the plaintiff from a situation in which a savvy third-party bidder is able to assume that property for an amount less than the judgment amount resulting in the creditor in question not being made whole. Once the highest bidder has been determined the sale will be concluded.

Further, in New Jersey, the conclusion of this sale triggers a ten 10 day redemption period for the benefit of the defendant property owner. Governments, though, tend to hold sheriffs' auctions at predetermined time intervals and when they have sufficient foreclosed property inventories. Sheriffs' auctions are also not for the uninformed bidder. A bidder is expected to know about the properties up for bid. Homes unsold at sheriff's auction may be had at later auctions for lower bid prices, though they might also need some rehabilitation.

Tony Guerra served more than 20 years in the U. He also spent seven years as an airline operations manager. Guerra is a former realtor, real-estate salesperson, associate broker and real-estate education instructor.

He holds a master's degree in management and a bachelor's degree in interdisciplinary studies. By Tony Guerra. Related Articles. 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. Enforcement of foreclosures, including related evictions for the property, are carried out by local law enforcement.

Therefore, auctions are conducted quite rapidly once the foreclosure has wrapped up. Foreclosure proceedings can also be initiated by a tax authority. When income and property taxes go unpaid, the federal government, municipalities, and other tax authorities can attach tax liens to real estate. Whoever attaches the lien to the property now has a claim on that property. If these liens go unpaid, tax authorities can pursue this unpaid debt through the court system and foreclosure proceedings.

The owner of a defaulted property generally has the right of redemption, meaning the owner can regain it by paying in full the lien and associated costs even after it is auctioned off, though the law varies depending on location.

If the property is sold through a regular foreclosure auction, the lender is usually selling a property it repossessed on its own. In many states, the owner of the defaulted property may be able to regain it—even after the auction—by paying in full the lien and any associated costs.

Mortgage lending discrimination is illegal. If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take.

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