Today we have a very interesting topic that we want to share with you, it is about sheriff sales. So if you have a bad habit of paying your debts to the banks or the state, this article is just for you. By the end of this article, you will learn a few important things, and you will understand why you need to pay off your debts to the country in which you live and to the banks on time.
What is a sheriff’s sale?
It is a kind of public auction of houses, apartments, and all kinds of real estate. This type of sale is made by order of the court that has pronounced the decision and has approved to make this type of auction. The municipal sheriff is tasked with maintaining the sale, and the proceeds from the auction will be diverted to banks, tax collectors, and other entities that have lost money from that property.
But how can you find yourself in this situation, to be deprived of the property you own and to be the subject of a public auction?
We will explain this through a very simple example. Let’s say you need money and you want to get a loan from a bank. In order for the bank to approve your loan application, you need to be creditworthy, have some income or own some property that will guarantee that you will repay the loan. For example, you mortgage the house and make an agreement with those who will lend you money, that if you do not return the money plus interest on time, they have a full right to take away your house. There are a number of other activities that can lead to this action to have your property confiscated if you do not respect the agreement with the bank. As a breach of contract can be considered:
– untimely and late payment of the mortgage
– untimely payment of taxes to the state for the property you own
– if in any way you damage the real estate and thus contribute to reducing the value of the house
– if you do not pay the owner’s insurance bills
– if you change the ownership of the house, i.e. you transfer the ownership to another person, and you do it without the knowledge of the bank.
If you violate any of the items listed in the agreement, the bank has every right in contact with the court to take away your property.
Below Scura outlines the four most important things you need to know about sheriff sales.
- If you are interested in this type of public auction, and if you want to buy confiscated property you can do so. All you have to do is open the newspaper, open the website of the sheriff’s office or go to that office in person where you can find out which properties are up for auction and which seized properties are for sale. Anyone who is interested can participate in these auctions, and if you give the highest price for the property for sale, it can be yours.
- At these auctions you can find all types of property, from houses and apartments, commercial properties, larger complexes, and much more. Any type of property that was mortgaged and the points of the contract were not respected, you can find that real estate on this sale. You may be a little surprised by the types of objects you can find here. So if you are looking for a room for your business or you are looking for a new home, you can easily come to this building and buy it here and become its next owner.
- To close a property sale, each sheriff’s department has a different time frame. However, usually no more than thirty days should elapse between the day of the auction where the house or building was sold and the closing date of the sale. It would be advisable if you talk to the sheriff yourself and he explains all the details about closing the purchase. Because sales details vary from department to department.
- The amount of money you need to have in you. In order to be a participant in such an auction, it is necessary to start owning a certain amount of funds. So if you are interested in participating in the sale of a house worth about $ 300,000, to be eligible to bid at the auction, you must own at least 10 percent of that value, which is $ 30,000. If you have these funds you can be part of this public auction, and maybe you will become the future owner of the house. When it comes to the minimum amount required to participate, these amounts also vary from one state to another and from one sheriff’s department to another.
This is one of the basic pieces of information you need to know about sheriff sales. These sales are made almost every day. For some, it may mean the complete confiscation of real estate, but for others, it means a great opportunity to get to the desired object. However, the banks certainly have the biggest benefit in this case, because, with the sale of the property, the debts of their debtors will be paid.
If you are interested in buying a property, get all the necessary information to be able to participate in the upcoming auction.
For those who have mortgages on the real estate they own, we recommend that they pay interest, taxes, and all related fees on time. If they do not, they will be deprived of it and put up for sale by the local sheriff’s office. This type of sale will transfer the ownership of the one who will give the highest amount of money for the building. And the money from the sale will be redirected to banks or tax collectors.
