Let's look at some Sheriff Sale rules or Foreclosure property auction rules and procedures.
Rules vary, but in Du Page County, Illinois, a bidder must appear at the auction with a cashier check in the amount of at least ten percent (10%) of the amount of the bank's opening bid.
The cashier check should be made out to "DuPage County Sheriff ", and then endorsed to the sheriff after the bidder becomes the high bidder.
If you appear at the Sheriff's Sale with a check made out to anyone other than the bidder, the sheriff's auction agents might not accept the check and allow you to bid.
Even if the check is made payable to the sheriff, you might not be allowed to bid.
But, you might be allowed to use just one check to qualify to bid on more than one property, so long as the amount of the check is sufficient to qualify you for each property individually.
If you want to use cash to qualify for bidding, then get approval from the sheriff's office ahead of time.
After you are the high bidder for a home at the foreclosure property sale, you will be required to deliver your qualifying funds to the sheriff, and then you will be required to pay the rest of the purchase to the sheriff price within 24 hours. you will get a receipt form the sheriff's office.
The sheriff's auction agents will give you a court date about a week or two after the auction. On that court date, you should appear in court.
This is the confirmation date, when the foreclosure judge approves, or "confirms" your purchase of the home. You do not need to do anything, or prepare any documents, in order to get confirmation of your purchase. The bank's lawyer, and the sheriff, prepare the documents for court.
After confirmation of your purchase at the sheriff's sale, you do not get to take possession of the home.
The judge's order confirming your purchase of the home will usually state that you get possession of the home 30 days after the confirmation of your purchase.
If you want to get possession earlier, then you need to file a motion for immediate possession, and present it at the confirmation court date. Your motion must state that the home is abandoned by the former owner, and that you should have immediate possession. Without that motion, you need to wait for the 30 days.
After expiration of the 30 days following confirmation of your purchase, you can go to the sheriff's office and pay a fee for a foreclosure eviction.
The sheriff will give you a date for the eviction, usually a couple weeks away.
On the date of the eviction, you need to appear at the property with at least three helpers, who you are responsible for paying.
You should also pay a locksmith to come to the property and open the door, and change the locks. Once the locksmith lets you into the property, you and your helpers can carry everything out of the home and leave it by the street.
You will need to supply plastic bags to put everything in. Then you are responsible for watching the property for 24 hours to discourage theft and vandalism.
After 24 hours, you are usually required by local ordinances, to remove the personal property from near the street, usually by renting a dumpster and filling it with the property.
There are some other auction rules to follow:
1. You have to register to be able to bid.
In order to register you have to have any form of valid ID and 10% of the amount on the property that you are planning to bid on.
2. Properties are auctioned in AS IS condition, NO returns.
"As Is" applies to the property TITLE as well. If you are not very familiar with those things, be very careful as once you buy property from Sheriff's sale you might be responsible for all the leans that are on that property and other mortgages as well, like 2nd, 3rd or even 1st mortgage in addition to what you've paid already.
The property that you buy at a sheriff's sale is subject to unpaid property taxes. If the former owners did not pay property taxes for a couple of years, then you will have a healthy debt for back taxes that comes with your new home.
The property also is subject to up to 6 months worth of unpaid association assessments.
The property is also subject to liens and mortgages which were recorded against the property by people who were not served with a complaint and summons in the foreclosure lawsuit.
If you want help with this, contact us.