What Does the Term "Sheriff Sale" Mean in a Foreclosure?

Along with catching criminals, sheriffs also auction off debtors' property.


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A sheriff's sale can happen when a homeowner doesn't pay his debts. If your creditor gets a court judgment against you over an unpaid bill, he can foreclose. Part of the process is the sheriff for your county arranging to sell the house at auction. You'll have advance notice the sale is looming.

The Judgment Lien

A creditor needs a lien before she can call for a sheriff's sale. After a judge rules the homeowner owes the debt, the creditor can ask for a judgment lien, which gives her a claim on the house. The creditor then delivers the abstract of judgment to the county recorder's office where the debtor owns real estate. In California, she can also file a notice with the California Secretary of State to attach the lien to personal property, such as jewelry or other valuables.


After the creditor wins his lien, the court will notify the debtor that the court has entered a judgment against her. The creditor can't ask the sheriff to foreclose until at least 30 days after notification goes out. Once the deadline passes, she can ask the sheriff to "levy" the house and sell it at auction. If there are other liens on the property, the sheriff will notify the lienholders at least 30 days before the sale. The homeowner gets the news of the sale at least 20 days in advance.

The Sale

The sheriff must announce the sale in legal ads and on the property, ensuring that prospective bidders are alerted. The property goes up for auction and the highest bidder wins. Immediately afterwards, the bidder pays with cash or a certified check. The exception is if the top bid is worth more than $5,000. In that case, the winner must pay $5,000 immediately but has 10 days to pay the rest. Houses are sold as is -- the winner can't get her money back if it's in sorry shape.

Drawbacks to Foreclosure

A California lien lasts for 10 years. Most judgment creditors prefer to wait until the owner has to sell or refinance, which requires paying off the lien, rather than foreclose. If there are previous liens on the house, such as the mortgage, those creditors get paid first. California law also guarantees some of the value of the house goes to the owner after the auction. In many cases, the creditor doesn't stand to collect very much, which reduces the attractiveness of a sheriff sale.

About the Author

Fraser Sherman


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