What is a Sheriff Sale?
In the event that the default is not resolved, the lender may take action to force a sale of the property, known as the Sheriff Sale. The borrower will either receive a notice of sale four weeks before the Sheriff Sale, or in some cases, a summons to court, where the lender will request the court to authorize the Sheriff Sale. The sheriff for the county where the property is located will conduct a Sheriff Sale in a public place. Once the Sheriff Sale has occurred, it may be difficult to save the home. Generally, the mortgage can no longer be “cured” or “worked out,” but rather a whole new loan must be obtained to cover the cost of the mortgage, late fees, attorney’s fees, etc. Obtaining new financing for a loan that is larger than the original loan (due to fees) is difficult and may be compounded by damage to the borrower’s credit caused by the foreclosure. If at all possible, borrowers are encouraged to take action to resolve the defaulted mortgage before the Sheriff Sale.
