A sheriff's sale is how property is sold through the sheriff's office to cover an unpaid judgment on a foreclosed property. When an owner cannot pay taxes, a mortgage, or both, the property is foreclosed and the sheriff of the county where it sits can sell it to the public, with the proceeds going to the creditors. The term covers both mortgage foreclosures and tax sales. A mortgage company usually does have the right to foreclose when payments stop, but only after taking the required steps and properly putting you on notice. If a lender skips procedures, or if the terms of the mortgage are unconscionable or predatory, the foreclosure may be open to challenge. Your mortgage may also give you rights to a loan modification or a payment plan.
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Tenants in a foreclosed property have their own set of questions. Whether you can stay after a sheriff's sale depends on the reason for the foreclosure and the notice required for eviction. In some cases a tenant has the right to remain for the balance of the lease term as a tenant of the new owner, and that is especially true where the lease was signed before the mortgage being foreclosed. Breaking the lease is a different question with a less forgiving answer. Unless the foreclosure itself terminates the lease, walking away is still a breach of the agreement. If your landlord's property is heading to sale, it is worth confirming where you stand before you move or sign anything.
Buyers should be careful too. Winning the bid does not make the sale final. In Philadelphia, the original owner may file a Right of Redemption and has nine months to reclaim the property, but only by paying back all taxes owed and whatever you paid at the sale. There are limits: the original owner must have occupied the property for ninety days before the sheriff's sale, and if they cannot prove occupancy they cannot claim redemption. There is no right to reclaim property sold at a mortgage foreclosure sale. The Sheriff's Department warns buyers to check with the Department of Licenses and Inspections and to confirm there are no problems with the title or deed. If you fix anything, keep your receipts, because you may be able to seek compensation from the original owner if the court permits a redemption. Do not spend money on a tax sale property right away.
Your Rights
A sheriff sale is a broad term that could mean a foreclosure or a tax sale. With the economy and the job market in slow repair, it is hard for many people to recover financially. This means that Sheriff Sales are more prevalent than ever before. A mortgaged property or property under a loan is subject to foreclosure if payment stops. Even if you are unable to make payments, the government or a mortgagor cannot snatch property from you. A mortgagor must follow proper procedure.
We at Freundlich & Littman, LLC understand that difficult situation of a Sheriff’s Sale. We also know what it takes to make a Sheriff Sale legal. While a mortgagor has the right to reclaim their property, you have rights, too. Before you panic, contact our offices to chat about your story. We are your Sheriff Sales lawyers, and we are here to help you.
Reclamation
The auction is complete. You have won the bid for the property. The sale is not final, however. The original owner of the property has a legal right to reclaim their property. In Philadelphia, the original owner may file a Right of Redemption. The original owner has nine months to reclaim the property. They may only reclaim the property if they pay back all the taxes owed on the property. Further, the original owner must pay any amount you paid for the property at the sale.
There are other requirements to consider. Not just anyone can show up and claim a right to the property. Even if the original owner shows up to reclaim their property, the law may prevent them from doing so. The original owner must occupy the property for ninety days prior to the sheriff’s sale. If the original owner cannot prove occupation, they cannot claim a Right of Redemption. It is important to note that the original owner has no right to reclaim property sold during a Mortgage Foreclosure sale.
The Sheriff’s Department of Philadelphia warns buyers to beware. Check with the Department of Licenses and Inspections. Make sure there are no problems with the property. This includes the title or deed to a property. If you need to fix any errors, keep your receipts. You may be able to seek compensation from the original owner if the court permits the original owner to reclaim the property.
Sheriff Sale Attorneys
We are your greater Philadelphia sheriff sales attorneys. We can assist you with your property, questions, and legal issues that arise from a sheriff sale. A sheriff’s sale notice is not final. You have options available to you. You may be able to file for a Right of Redemption. Likewise, a buyer may collect for title search efforts.
If you purchased a property at a tax sale, do not spend money on it right away. If the previous owner files a Right to Redemption, they may reclaim the property. Any money spent on the property is therefore wasted. Wait the appropriate time before spending money. If you need legal advice on a Sheriff’s Sale, do not hesitate to reach out to us at Freundlich & Littman, LLC. We can help you.
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