If Your Home Sells At Sheriff Sale, KNOW THE AMOUNT OF THE BID!

Homeowners are still making the critical mistake of giving up after their home is sold at sheriff sale.  DON'T!  It's NOT true the "banks always bid the amount they are owed at sheriff sale."  For any number of reasons, the bank may bid less than what they are owed.  What this means for the homeowner, is the amount bid at the sheriff sale, is now the amount needed to payoff the loan and avoid foreclosure.  You can; but it's unlikely,  refinance this smaller amount and retain your property.  A more feasible strategy, would be to sell the home and pay off the bid amount with the proceeds from the sale.  In MN, you have the right to sell your home during the redemption period.  Redemption periods begin at the time of the sheriff sale, and typically last six months as long as you haven't abandoned the property. Here's a quick example:

A. Let's say the amount owed to the bank is $325,000
B. At sheriff sale, the bank bids $275,00
C. $275,000 is now the amount you must pay the bank; not $325,000
D. In the 2014 market, your home is worth $315,000
E. During the redemption period, you list and sell your home for $315,000
F. You pay the bank its $275,000 and sale expenses
G. Any excess funds are yours
H. You have avoided foreclosure and walk away with a check

Please read the story below about a MN homeowner who was in this exact situation--extreme example--but didn't have the knowledge to benefit herself:

Little Known Law Could Help Foreclosed Homeowners

Check On Don

Don Mailey

RE/MAX Results

952-212-0968

Don@DonMailey.com