FAQ about a Sheriff Sale
A sheriff sale is another way to purchase low cost properties. Here are some of the more frequently asked questions answered. When an investor or prospective homeowner is looking for an inexpensive r...
A sheriff sale is another way to purchase low cost properties. Here are some of the more frequently asked questions answered.
When an investor or prospective homeowner is looking for an inexpensive route to purchasing property, a sheriff sale is a viable option. The current downsized economy has had a ripple effect regarding real estate that can be advantageous for those with ready cash or financing. Many homeowners are unable to pay their mortgages or sell their homes, so the properties become available for purchase at a substantial savings. Some examples of homes with slashed prices due to the owners’ financial problems include foreclosures, tax deed sales, and those that end up on the auction block at a sheriff sale. Here are some frequently asked questions about these methods of realty acquisition:
- What is the difference between the above three types of home buying? A foreclosure is a legal action taken by a bank or mortgage company to take back the home. Once a house loan has become severely delinquent, the lender exercises the contractual right to reclaim the property. These properties are considered “foreclosed upon” and are put back on the market at a lower cost. A tax deed sale is one that was repossessed by the government due to non-payment of property tax. Every home owner must pay a percentage of their assessed home value in annual taxes in order to fund public schools, libraries, emergency personnel such as the police or fire department and road maintenance. A sheriff sale is one of the above but is a case where a sheriff must step in to preside over the process.
- How would a buyer go about learning about times and dates of local sales? Notification of availability and timeframe is made available in newspaper legal notices, through postings at the local courthouse and via a realtor that specializes in these cases.
- Is the buyer able to inspect a property before purchasing it? No, one of the reasons for the inexpensive pricetag is that all sales are based on an “as is” basis.
- Are these homes vacant and ready for occupancy? Not always. Sometimes the owners have refused to leave and will have to be evicted by law enforcement officers from the sheriff’s office. Refusing to leave the premises is known as “squatting” and it is illegal. When a debt on a house goes belly up, the property becomes owned by the bank or tax assessor’s office.
- How are these homes sold? A public auction is held where each real estate item will be sold to the highest bidder. These are usually cash deals, so the investor needs to be ready to produce the cash or have the financing already in place at the time of the auction.
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A Sheriff Sale is an option to purchase property at a low cost. If you are interested, please see: http://www.civicsource.com/