What Is a Sheriff Sale?

A sheriff’s sale is the process by which property is sold through the sheriff’s office to cover unpaid judgment on a foreclosed property. When a property owner cannot afford to pay either taxes, their mortgage, or both, their property is foreclosed, meaning it is possessed by the state. When there is unpaid money owed to the state or to creditors for taxes or mortgage, the Sheriff of the county in which the property is located can sell the property to the public, and the money made at the sale is used to pay the creditors the unpaid debt.  The sheriff’s sale is the public sale hosted by the sheriff at which the foreclosed property is sold.

My Mortgage Company is foreclosing on my home, can I stay in my Property?

Your mortgage company usually has the right to foreclose on your property if you fail to make timely payments.  However, in order for lenders to properly foreclose on your property it is important that they take several steps and properly put you on notice.  If a company fails to take the necessary procedures, or if the terms of the mortgage or unconscionable or predatory, you may be able to challenge the foreclosure proceedings.  Additionally, there are several rights that you may have under the terms of your Mortgage that may allow for loan modifications or payment plans.

Can I Break My Lease for a Sheriff Sale?

When a leased property is foreclosed and subject to a Sheriff’s sale, it is important for the tenant of the foreclosed property to know his or her rights. If a tenant is looking to stay in his lease after a sheriff sale, it will depend on the reason for the foreclosure and the required notice for eviction. In some cases, tenants have the right to remain for the rest of their lease term as a tenant to the new owner, especially if the lease was signed prior to the mortgage for which the property is being foreclosed.

If a tenant is looking to break his or her lease due to a sheriff’s sale, it will similarly depend upon the reason for foreclosure. However, generally if a lease is not terminated by the foreclosure itself, the tenant is not able to freely break the lease. Breaking the lease would still be considered a breach of the lease agreement.

If your landlord’s property is being foreclosed, it is important to consult a lawyer to ensure that your rights as a tenant are upheld throughout the foreclosure and sale process, as well as with the new landowner. The property attorneys at Freundlich and Littman, LLC., would be happy review your circumstances and make sure your property rights are protected. Call us today at 215-545-8500 or email us at info@freundlichandlittman.com to schedule a free consultation.

Sources

US Legal, Sheriff’s Sale Law and Legal Definition, Legal Forms Inc. d/b/a/ US Legal, 2019.

W.S.R., Effect of Foreclosure of Mortgage as Terminating Lease, 14 A.L.R. 664 (Originally published in 1921), updated 2020.

Philadelphia Eviction Prevention Project, My Rental Property is Going through Foreclosure or Sheriff Sale. What are my Rights?, Eviction Help, February 1, 2019.

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.

Contact us today for a free consultation and case evaluation.