A sheriff sale is a type of foreclosure where the properties are sold at public auction (typically at the courthouse). EveryHome’s residential investment guru, Jen Kuznits, was kind enough to share the most important information about sheriff sales.
As Jen explains, homes that are sold at a sheriff sale tend to be the most risky. While they’re typically sold at a deeply discounted price, you can not gain access to the home prior to bidding.
Plus, it’s not uncommon for people to still be living there! Just because you are the highest bidder, it does not mean you can go right over the house, and kick the people out. You will have to follow the eviction process that your county has laid out. Immediately after purchasing a home at sheriff sale, you should insure it. In certain areas, this eviction process can take up to a year! As a result, be sure to factor in legal fees, carrying costs, and always assume the house will need to be gutted.
If you’re interested in real estate investing and wish to further consider purchasing a home at auction, be sure to do your research in regards to the bidding process. Every county may operate differently but Montgomery County, for example, requires a down payment in the form of cash or certified check to be paid immediately. The remainder of the sale price must be paid in cash or certified check to the sheriff within 10 days. The easiest way to find a list of homes that will be going to the sheriff’s sale is to search the Sheriff’s Department for your local county.