Sheriff Sale Guide: How to Buy Properties at Foreclosure Auctions
A sheriff sale is a public auction of a foreclosed property ordered by a court. In judicial foreclosure states (Florida, New York, New Jersey, Ohio, Illinois, Pennsylvania, and others), when a homeowner defaults on their mortgage, the lender must file a lawsuit and get a court judgment before the property can be sold. The court then orders the local sheriff to conduct the sale. This is different from a trustee sale, which occurs in non-judicial foreclosure states and does not require court involvement.
Sheriff sales can be excellent opportunities for investors to acquire properties below market value, but they come with risks that do not exist in traditional purchases. This guide covers how the process works, how to bid, and what to watch out for.
How the sheriff sale process works
Step 1: The lender files a foreclosure lawsuit
The lender files a complaint in court alleging the borrower has defaulted on the mortgage. The borrower is served and has the opportunity to respond. This process takes 6 to 18 months in most judicial foreclosure states, longer in states with significant court backlogs (New York can take 2+ years).
Step 2: The court issues a judgment
If the borrower does not cure the default or successfully contest the foreclosure, the court issues a judgment of foreclosure and orders the property sold at a sheriff sale. The judgment specifies the amount owed (the judgment amount), which becomes the starting bid at auction.
Step 3: The sheriff publishes notice
The sheriff publishes the sale in a local newspaper and often posts it on the county sheriff's website. The notice includes the property address, legal description, judgment amount, sale date, and bidding requirements. Sales are typically scheduled 30 to 60 days after the judgment.
Step 4: The auction
The auction takes place at the county courthouse, sheriff's office, or online (increasingly common post-2020). The opening bid is usually the judgment amount (outstanding loan balance plus fees, interest, and court costs). Bidding proceeds from there. The highest bidder wins.
Step 5: Confirmation and deed
In many states, the sale must be confirmed by the court before the deed is transferred to the winning bidder. The confirmation period allows the borrower a final opportunity to challenge the sale (in some states). Once confirmed, the sheriff issues a sheriff's deed to the buyer.
Bidding requirements
Requirements vary by county and state, but common rules include:
- Registration: You may need to register as a bidder before the sale, sometimes 24 to 48 hours in advance.
- Deposit: A deposit is typically required to bid, usually 10% of the opening bid amount, paid by certified check or cashier's check. If you win, the deposit is applied to the purchase price. If you lose, it is returned.
- Payment deadline: The balance of the purchase price is due within 24 hours to 30 days of the sale, depending on the jurisdiction. Some counties require full payment at the auction.
- Cash or certified funds only. No financing, no contingencies, no inspection period.
Risks of buying at sheriff sales
No interior inspection
You typically cannot inspect the interior of a sheriff sale property before bidding. The property may be occupied by the former owner, a tenant, or it may be vacant and vandalized. You are bidding based on exterior observation, public records, and your knowledge of the neighborhood. Budget for worst-case repair scenarios.
Surviving liens
Not all liens are extinguished by a sheriff sale. The foreclosure wipes out the mortgage being foreclosed and any junior liens (second mortgages, HELOCs recorded after the first mortgage). But certain liens survive: federal tax liens (IRS), property tax liens, HOA super-liens (in some states), and certain municipal liens. Run a title search before bidding to identify any liens that would survive the sale.
Redemption periods
Some states give the former owner a redemption period after the sheriff sale during which they can reclaim the property by paying the full auction price plus interest and fees. Redemption periods range from 30 days to 12 months depending on the state. During this period, you own the property but the former owner can reverse the sale. States with long redemption periods include Michigan (6 months), Illinois (7 months for residential), and Minnesota (6 months).
Eviction costs and timeline
If the property is occupied, you need to evict the former owner or their tenants after the sale. Eviction costs $1,000 to $5,000 in legal fees and takes 30 to 90 days depending on the state. In some jurisdictions, tenants with valid leases have the right to remain until the lease expires (federal Protecting Tenants at Foreclosure Act).
Strategies for sheriff sale success
- Research before you bid. Run a title search, drive by the property, pull comps, estimate repairs using exterior-only observation, and calculate your maximum bid using the 70% rule. Know your walk-away number before the auction starts.
- Start with smaller properties. A $60,000 opening bid on a 3/2 in a working-class neighborhood is a manageable first auction purchase. A $300,000 opening bid on a commercial property is not where you learn.
- Budget for unknowns. Add 20% to 30% to your repair estimate for interior issues you cannot see. Budget for eviction, holding costs during any redemption period, and legal fees for title clearing.
- Attend several auctions before bidding. Watch the process, see how experienced bidders operate, understand the pace and rules. Each county runs their auction slightly differently.
- Have your financing ready. Cash or pre-arranged hard money with fast funding (7 days or less). Auction purchases do not have financing contingencies.
Sheriff sale vs. trustee sale
| Feature | Sheriff Sale | Trustee Sale |
|---|---|---|
| Foreclosure type | Judicial (court-ordered) | Non-judicial (no court) |
| States | FL, NY, NJ, OH, IL, PA, CT | TX, CA, GA, AZ, CO, WA, NC |
| Timeline to auction | 6-24 months | 3-6 months |
| Conducted by | County sheriff | Trustee (appointed by lender) |
| Court confirmation | Often required | Not required |
| Redemption period | Varies (0-12 months) | Usually none or short |
Related guides
- How to Buy Foreclosed Homes
- Pre-Foreclosure Homes Guide
- Title Search Guide for Real Estate
- What is a Sheriff Sale? (Glossary)
- What is REO?
- Deal Run Comp Analysis
Related Articles
- HUD Homes: How to Find and Buy Government-Owned Properties
- Tax Lien Investing: Complete Beginner's Guide for 2026
- How to Buy Foreclosed Homes: Investor's Guide for 2026