- The Sheriff's Sale is an auction that is conducted at the County Sheriff's office.
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- The foreclosure sale may be postponed by the County Sheriff by posting a notice of postponement at the same location
the sale was originally going to occur at.
The
Notice of Foreclosure will state the date and time of the Sheriff's Sale
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- Anyone
can bid at the Sheriff's Sale provided they can pay cash or by certified funds.
Often
the only party bidding is the lawyer for the foreclosing lender.
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The
Lender will bid the amount of the debt or the value of the property. Generally, lenders have been bidding the amount
of the debt even though the debt is greater than the value of the property. Lately, some lenders have bid in less than
the amount of the debt and have bid what they believe to be the actual value of the property.
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- Following the sale, the mortgagee's costs of sale are reimbursed and the
debt owed to mortgagee is paid to the extent covered by the sale price.
Any bid in excess of the amount owed the mortgagee is a surplus and may
be reached by junior lien holders. If no such holders exist, the surplus must be returned to the mortgagor.
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Any shortage is a deficiency.
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Generally, any lender who Forecloses by Advertisement or
redeems from such a foreclosure as a junior lender is prohibited from seeking a deficiency against the borrower.
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- The
County Sheriff issues a Certificate of Sale to the high
bidder.
- The Certificate of Sale operates as a conditional conveyance of the mortgaged premises
subject to the debtor's rights of redemption.
- The Certificate of Sale
must state the following:
~a description of the mortgage and the property,
~the price paid, the
time and place of the sale,
~the name of the purchaser,
~the interest rate
in effect on the date of the sale, and
~the duration of the
redemption period.
- The certificate must be recorded with the County Recorder within 20 days of the sale.
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