Our Clients Ask Us: Sheriff's Sale Bids

We recently filed a foreclosure against one of our delinquent residents, and a sheriff’s sale was held. There were no bidders at the sale. Will it cost the Association any money to try to set another sheriff’s sale?

ANSWER: Probably.

Unfortunately, most counties charge a deposit to set a sheriff’s sale. For example, some counties charge a small fee (example: Portage County is $150.00), while other counties charge a very steep fee (Lake County charges $1,750.00), or just any outstanding costs. These costs can be relatively prohibitive if your association is tight on money, which most are.

When determining whether to re-set a sale, consider a few factors. Is there a bank involved in the foreclosure? If so, there is a relatively good chance the bank will buy it at the sale. If not, the Association is hoping there will be an outside buyer, which does not happen very often. If there is no bank involved, it might be best to try to put the feelers out there to see if there are any investors in the neighborhood or outside investors who might want to bid. This will make it more likely that the property sells the next time. It might be worth foregoing a few months worth of maintenance fees instead of a hefty deposit to ensure that you will have some bidders.

There also may be a chance that the Association can buy back a unit, but it may require a vote of the membership.

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