What is a sheriff's sale?

A sheriff's sale is the public auction of real property ordered by a court to recover funds from a mortgage foreclosure or property tax delinquency. The county sheriff acts as the auctioneer and holds the sale at a specified time and location, typically at the courthouse or county building. The sale proceeds are used to pay off the mortgage lender, any junior liens, property taxes, court costs, and the foreclosure attorney's fees.

Bidders at a sheriff's sale typically must bring cash or certified funds to register and place bids. The minimum opening bid is usually set at or near the total debt owed. The winning bidder receives a sheriff's deed, which transfers legal title to the property. Unlike traditional real estate transactions, sheriff's sales generally occur "as-is" with no warranties, inspections, or contingencies.

Occupants of the property, including the owner and any tenants, are bound by the outcome of the sale. After the sale is finalized and the redemption period expires (if applicable under New Jersey law), the new owner may take possession and can begin eviction proceedings if needed. Understanding the mechanics of a sheriff's sale is critical for property owners facing foreclosure. Foreclosure defense attorneys in the Trenton area can explain your options and rights before a sale occurs, including loan modification, payment plans, or other alternatives to auction.