Question 1

Where and when are sheriff sales held?

Accepted Answer

Sheriff sales in New Jersey are held weekly at their respective counties. The sales happen at a designated time and location, usually at the local county sheriff's office or courthouse. Please see below for a list of the 21 New Jersey counties' websites, which will give more information about time and place for each sheriff sale. Clicking on the name of each county will take you to the sheriff's office website.
 
Atlantic - Thursdays 12pm
Bergen - Fridays 2pm
Burlington - Thursdays 12pm
Camden - Wednesdays 12pm
Cape May - Wednesdays 1pm
Cumberland - Tuesdays 2pm
Essex - Tuesdays 1:30pm
Gloucester - Wednesdays 2pm
Hudson - Thursdays 2pm
Hunterdon - Wednesdays 2pm
Mercer - Wednesdays 2pm
Middlesex - Wednesdays 1:30pm
Monmouth - Mondays 2pm
Morris - Thursdays 2pm
Ocean - Tuesdays 2pm
Passaic - Tuesdays 2pm
Salem - Mondays 2pm
Somerset - Tuesdays 2pm
Sussex - Wednesdays 2pm
Union - Wednesdays 2pm
Warren - Mondays 2pm

Question 2

What due diligence should I perform prior to the sheriff sale?

Accepted Answer

It is always recommended to try to see the property in person before you decide to bid at auction. Seeing the property in person will give you a better idea about its condition. Please note that by law, you cannot actually enter the premises to assess its condition. You can only view it from the outside by walking or driving by. If you can’t see the property in person, you may wish to speak to realtor or someone who is familiar with the area to see if they can advise you.
Another important factor to consider is if the property is currently vacant or occupied. If it is occupied, you may need to go through an eviction process. The eviction process can vary based on location and there are laws in place protecting renters rights, so you will need to factor in the time it takes to complete eviction if you plan on selling quickly.
Finally, it is prudent and recommended by all sheriff offices in New Jersey that you perform a title search to uncover potential liens/judgments that you may be responsible for after auction.  Parts of the search can be done at the county land records room but other searches (such as judgments) need to be performed at the state level.

Question 3

Why do I need a title search?

Accepted Answer

The biggest concern for a potential investor bidding at a sheriff sale is potential title issues. Prior mortgages that have not been paid, liens, judgments, and delinquent taxes/water & sewer bills are the most common issues that are uncovered. 
 
A preliminary title search is the easiest way to uncover these issues so you can make an informed decision BEFORE bidding at auction. Title searches can range greatly as far as what is included in the search. It can also become significantly more expensive if it is ordered through a third party that is not the company actually performing the title search (less than 1% of title insurance agencies and law firms in NJ perform their own title searches).

Question 4

What goes into a title search?

Accepted Answer

A title search is simply an examination of public records regarding real property. A title searcher will examine recorded deeds, mortgages, liens, judgments, and other records pertaining to real property to uncover potential title issues. 
 
In addition, tax records are requested from the township and examined by the searcher to paint a clear picture about what may or may not be owed.
 
Finally, a statewide judgment search is suggested for sheriff sales. It is important that whomever you order a title search from is aware of the purpose of the search as title searches can come in many forms but still be called “title searches”.
 
Order a title search HERE!

Question 5

What liens or judgments are "wiped out" via foreclosure?"

Accepted Answer

In many cases, junior liens can be wiped out by the foreclosure. Simply put, a junior lien is any lien recorded AFTER the senior lien (with the senior lien being the oldest recorded lien of record).
 
During the title search, the searcher will examine the lis pendens to see if junior lienholders are named as defendants. If the junior lienholders are named directly in the lis pendens, it is more likely that the junior lien will be wiped out via the foreclosure of the senior lien.
 
In the case of judgments, in most instances a creditor will not pursue the judgment if it is for a dollar amount of less than $5,000. Similar to junior liens, if a creditor is named directly in the lis pendens then it is highly likely that the judgment will be wiped out via the foreclosure.
If you see a massive list of judgments in the judgment search, there is not necessarily a reason to panic. Judgments are typically filed by name so a common name will yield dozens, if not hundreds of results that may or may not be pertinent. Be especially wary of judgments with direct “hits”, meaning matching address, a rare name, or if multiple names on the deed are within the same judgment.
 
Tax liens (municipal and federal) are perpetual liens and are NOT wiped out via foreclosure.

Question 6

What is NOT "wiped out" via foreclosure?"

Accepted Answer

Superior liens, judgments and other liens not named by the plaintiff in a foreclosure, tax liens, most water/sewer balances, HOA/condo association balances (at least within the last 6 months), may all survive a foreclosure.  Ownership interest in the property not accurately served may also have claim to a property.

Question 7

Do I need an attorney to buy at sheriff sale auction?

Accepted Answer

While it is always recommended that you hire an attorney, many sheriff sale investors choose not to hire an attorney because there might not be a typical attorney review period or traditional contract negotiations. If you need recommendations for an attorney who specializes in these types of transactions please contact us.

Question 8

Why do properties keep getting postponed or cancelled?

Accepted Answer

Here is a tip. You can sometimes eliminate certain properties from your list by looking at its status history on the county sheriff's sale listing. If a property's sale has been postponed or adjourned before, it will likely be postponed or adjourned again, often indefinitely. A postponement or adjournment usually indicates that the foreclosed owners are actively trying to modify their loan or sell their property through a short sale (thus avoiding foreclosure). 
 
Also noteworthy is that at any time prior to the sheriff sale, a homeowner can file for bankruptcy protection. If this happens, the sheriff sale is cancelled. If you go to an auction expecting to bid on a property but the auctioneer never announces it, it may have been postponed, adjourned, or the homeowner may have filed for bankruptcy protection.

Frequently asked questions