Help Me Understand Property Sale To Satisfy Judgment
Can someone explain this one to me (sorry I'm new to this one):
Property (house with 7 acres) to be sold at Sheriff's auction to satisfy a judgment. From what I've learned online, the property owners lost a suit against them in the approximate amount of $6,000. The property being sold is worth over $300,000!!
My questions, the legal notice states that it will be sold "sell at public venue for cash to the highest bidder, all the right, title, interest and estate, in and to said real estate, or so much thereof, as will satisfy said execution and costs"
Are you telling me that if I'm the only one bidding and I bid $10,000, which is enough to cover the judgement, that the sheriff will sell this $300,000 property to me for cash?? Can't be!
I don't know how this works. Can someone explain. Dang, I'd find the money somehow!! Ha,ha. Kathleen.
You buy what the Sheriff has to sell. A judgement adheres to a property at a certain time. If there are leins that predate the judgement, the winning bidder will take the property 'Subject to' the senior leins (and taxes, of course)
Any overage bid, over your J plus interest and costs, would go to property owners...but I wouldn't concern yourself a whole lot with what-ifs.
The RE owner is more than likely going to pay this off a day or so prior to the sheriff's sale...so you're not likely to find yourself with that RE.
Okay, UNLIKE a foreclosure sale, whoever is the highest bidder ASSUMES any pre-existing mortgage on the property???
Quote:
On 2004-03-17 18:09, pmatheson1 wrote:
You buy what the Sheriff has to sell. A judgement adheres to a property at a certain time. If there are leins that predate the judgement, the winning bidder will take the property 'Subject to' the senior leins (and taxes, of course)
SO, the notice says that the sheriff has "levied upon and seized all" , but the owners can still come up with the cash before the sale??? ANY WAY to check right before the sale to see if it will still go to sale without actually GOING to the sale?? Will some sheriff's offices post online sales like the Foreclosure attrny's do?
Quote:
On 2004-03-18 00:12, JohnMerchant wrote:
Any overage bid, over your J plus interest and costs, would go to property owners...but I wouldn't concern yourself a whole lot with what-ifs.
The RE owner is more than likely going to pay this off a day or so prior to the sheriff's sale...so you're not likely to find yourself with that RE.
Kathleen,
You said:
"Okay, UNLIKE a foreclosure sale, whoever is the highest bidder ASSUMES any pre-existing mortgage on the property??? "
Wrong!!! Just like a forclosure sale, the winning bidder takes the property 'Subject To" all leins that are Senior to the Forclosing Lein.
Let me ask in a different way.... There is a $6000 lein on a $300,000 property, it's going to sheriff's sale. Give me a common scenario, with details, how this might play out for an investor.... Thanks!
There are likely other, more senior leins on this property than the one being foreclosed on. If the property does get to the sale w/o being paid off beforehand, then you'd be buying the property subject to the other leins which won't be erradicated.
If it goes to sale, I guess if you decide that the value of the property is more than any other leins more senior than the one foreclosing then you could have a good deal on your hands.