The thought of losing your home because of debt and having it sold through a sheriff’s house auction can be overwhelming and scary. Most people don’t know anything about sheriff’s sales until they are involved in one.
Having your house sold through an unfamiliar auction process can be confusing. A foreclosure attorney can help explain the intricacies of the process to you and answer any questions you might have, as well as help you find solutions that may save your home even if you’re facing a sherrif’s sale.
Joshua Denbeaux is an experienced New Jersey foreclosure attorney. Contact us today to learn more about how we may be able to help you through the foreclosure process.
What Is A Sheriff’s Sale?
A sheriff’s sale is when the county sells a home in an effort to pay back unpaid debts or liens on the property. This type of sale takes place after the court gives the final judgment on foreclosure.
An unpaid mortgage is the most common type of debt that can trigger a sheriff’s sale, but taxes or other liens on a property can also cause a house to be sold at a sheriff’s sale.
When deciding if a house should go to a foreclosure auction in NJ, the court considers a variety of factors. Some of the most important things are the length of the delinquency, the amount of debt, and if there have been any attempts by the homeowner to enter into a repayment plan.
Property value can also be a factor in determining if a sheriff’s sale takes place. If the delinquent loan is large or the home’s property value has decreased significantly since the loan was taken out, a sheriff’s sale might not be worth it because the lender might not be able to get enough money back.
What Happens If No One Bids On A Sheriff’s Sale?
Unfortunately, if a house is not sold at a foreclosure home auction, it doesn’t go back to being owned by the homeowner. An unsold auction property becomes a Real-Estate Owned Property (REO). With an REO, the bank or lender involved in the debt will take over ownership of the home.
Once the bank or lender owns the property, they can sell it or try to auction it again themselves. It’s common for banks to take time to try to improve the home to increase the property value and sell the home for more. They could also decide to hold onto the property and wait for a better market for selling a house.
Depending on what your bank or lender decides to do with the home while they’re waiting to sell it, the home not being sold at the auction could mean that you are allowed to live in the home a little while longer. While this is a good outcome and gives you more time to find new housing, this is never guaranteed, so you should be looking into housing and not rely on getting lucky and being allowed to stay in your home.
Contact a Foreclosure Attorney Today
A sheriff’s sale is the last step in the foreclosure process. If you have gotten to the point where your house is being prepared for a sheriff’s sale, a foreclosure attorney may be able to help you postpone or avoid the auction, but it’s important that you act quickly.
It’s not too late to contact a foreclosure attorney, but the sooner they are involved in the process, the more options there may be for you to avoid foreclosure.
Don’t wait to start protecting your home from foreclosure. Talk to an attorney before it’s too late to save your home. Contact Joshua Denbeaux today to learn more about how we may be able to help you avoid a sheriff’s sale.
