A lot of investors think that purchasing a property at Sheriff Sale is one of the best avenues for investing. Sometimes it is and sometimes it is not. Purchasing the property at the right price is the key to investing.

When you attend a Sheriff Sale often times the bank will purchase the property back and bid their full loan amount. Typically this is because the loan is backed by a government loan that insures their loan upon default. If they would bid less, it could jeopardize their recovery.

Often times a property is pulled from the sale at the last minute due to a work out arrangement and/or a Bankruptcy filing. This can happen as late as 10 minutes before the sale if the correct parties and the Sheriff’s department is adequately notified.

Prior to bidding on a property at Sheriff Sale you need to contact your local Sheriff’s Department to determine what their local guidelines are. Are they holding the sales at their local court house, Online only or auctioning the property on site at the property. Some jurisdictions are allowing Court Ordered auctions to be held at the properties or Online. Generally, when you purchase a property at Sheriff Sale, you do not have the opportunity to view the interior. You are purchasing the property, site unseen. This is one of the downfalls of purchasing a property at Sheriff Sale. If you have been in the business of investing in real estate for awhile, then you know how to run the numbers to determine if purchasing the property will be a wise investment or not. (We will talk about running the numbers later as we dig into the topic further; purchasing a property at Sheriff Sale.)

The local Sheriff Sale guidelines will also tell you how much money they require as a down payment on the day of the sale. These funds are typically required to be certified funds and are to be paid by the end of business the day of the sale. Typically you have 30 days to complete the sale. Again, you need to check with your local Sheriff’s department for your locations rules. If the sale is not confirmed and completed within the required 30 days you could be in contempt of court for failure to complete the sale. If you ever have any questions regarding this process, please check with your attorney.

When looking at purchasing a property at Sheriff Sale you need to decide why you are looking at buying. Is it for investment or is it to purchase a new residence to live in yourself. This reason will often affect the way that you bid when you attend the sale.

Items we will continue to discuss, will be:

Obtaining your local Sheriff Sale List. The difference between a foreclosure sale and a delinquent tax sale. Looking at the exterior of the property prior to the sale and evaluating the neighborhood. Looking for comparable sales and calculating the numbers. Obtaining financing for a home purchased at Sheriff sale. What happens once you are the successful bidder. Who to contact if the Plaintiff (bank) buys the property back. And more.

Have a question? Send me an email or complete the contact form.