When a borrower has defaulted on their mortgage a sheriffs sale is used to liquidate the property. A sheriff's sale is almost the same as a normal foreclosure auction, the only difference is that some states around the country require that a sheriff preside over the sale. The properties listed for auction in a sheriff's sale are there because of court-ordered foreclosures. A sheriffs sale enables lending institutions to recover money lost when a homeowner defaults on a loan.
You can get a great deal on a home at a sheriff's sale auction. It is possible to get a home at up to 70% off its market value. Unfortunately, you will not have a chance to inspect the home at the auction. It's important to be familiar with the auction process before you attend a sheriff's sale auction.
Visit our Education Center to get more information about buying foreclosures in your area.