Property To Be Auctioned
A sheriff's sale is an auction that is the result of foreclosure. When the original owner of a piece of personal property used as collateral fails to make their payments as required the property is sold to repay the loan. The original owner generally has several options to bring the loan current before the property is repossessed and slated for sheriff's sale.
Minimum Bid
Oftentimes, there is a minimum bid which insures that the court costs, taxes, costs of the sale, etc. are met. The minimum bid is often referred to as a "reserve." If the minimum bid is not met, the property will not be sold.
Deposit
Usually, a percentage of the highest bid is required to be deposited immediately to serve as a deposit. The remainder of the payment is due within a short time of the sale, usually within 30 days. Many sales require that the deposit be paid in cash, or with a money order or certified check, so it is important to come prepared to make a deposit if you plan on bidding on any of the property offered at the sale.
Second Place
If the highest bidder fails to settle on the property within the period allotted, the second highest bidder is often given an opportunity to purchase the property before it is auctioned off again. If you were the second highest bidder, you may want to keep track of the property so that you can make an offer in the event that the highest bidder fails to satisfy the terms of the sale.
