What are sheriff's sales?

FALLBROOK – A sheriff's sale is a type of auction at which defaulted or repossessed properties are sold at the end of the foreclosure process. According to Investopedia.com, the proceeds of a sheriff's sale are used to pay mortgage lenders, banks, tax collectors, and other litigants who have lost money on the property being sold.

Sheriff's sales are not conducted when a homeowner misses a mortgage payment. In fact, such sales take place only after lenders have notified borrowers of default and given them time to catch up on missed payments. Sheriff's auctions are conducted in public, often out...