Sheriff Sale question

[Frank Del Corso]

Hello! I found a property on the Sheriff sale website in my county in NJ and the current status of the property is: 

Status History (Current Status:Bankruptcy/Adjourned - 9/24/2025)

I like the property and would buy it if it makes sense but I don't know where to start. I called and left messages with the attorney listed but I really wasn't sure what to even say in the message I left. Has anyone bought a property at a sheriff's sale and understand the process? I'd love to learn how this all works to see if this could be a good source of properties.

Thanks for any help here!

[Jonathan Greene]

It means there is a pending bankruptcy that has to be dealt with before the sale so they continued it and there will be a new date. Do you know how Sheriff's sales work at all? These are all cash purchases with 10 percent down at the time you win the auction via cashier's check. You can not see the property and have no access. You get all the liens on the property and only some will be disclosed on the website. There are also groups that go to every auction every time so if you win, they let you win or bid you up. It's only for the most experienced investors to have any chance.

[Frank Del Corso]

Thanks Jonathan! I have no idea how Sheriff sales work but I know that some people do well so I am working on learning more about them. Do you know of a good resource to do so? I need a mentor in this area.

[Don Konipol]

Quote from @Jonathan Greene:

It means there is a pending bankruptcy that has to be dealt with before the sale so they continued it and there will be a new date. Do you know how Sheriff's sales work at all? These are all cash purchases with 10 percent down at the time you win the auction via cashier's check. You can not see the property and have no access. You get all the liens on the property and only some will be disclosed on the website. There are also groups that go to every auction every time so if you win, they let you win or bid you up. It's only for the most experienced investors to have any chance.

Jonathan is that 10% down at time of sale specific to New Jersey, or generalized for most states?  I am only familiar with Texas and while there is sometimes limited flexibility it’s basically 100% due at sale. 

[Jonathan Greene]

Quote from @Don Konipol:

Quote from @Jonathan Greene:

It means there is a pending bankruptcy that has to be dealt with before the sale so they continued it and there will be a new date. Do you know how Sheriff's sales work at all? These are all cash purchases with 10 percent down at the time you win the auction via cashier's check. You can not see the property and have no access. You get all the liens on the property and only some will be disclosed on the website. There are also groups that go to every auction every time so if you win, they let you win or bid you up. It's only for the most experienced investors to have any chance.

Jonathan is that 10% down at time of sale specific to New Jersey, or generalized for most states?  I am only familiar with Texas and while there is sometimes limited flexibility it’s basically 100% due at sale. 

I believe most people do bring it all, but I don't think you have to at the time of auction in NJ. It may be a 3-day window after. I can double-check and confirm. I haven't paid attention to them in years because there is nothing worth buying at them.

[Jonathan Greene]

Quote from @Frank Del Corso:

Thanks Jonathan! I have no idea how Sheriff sales work but I know that some people do well so I am working on learning more about them. Do you know of a good resource to do so? I need a mentor in this area.

For NJ, I wouldn't go near them with a ten-foot poll unless I had bought sight unseen before. I don't think there are many people doing that well on these now as there aren't as many options out there.

[Kathy Utiss]

If you have an address you may be able to verify who owns property via netronline.com. The tax assessor will usually send a tax bill to an address the owner is listed as recieving it. Once you have the owners name you can check the status in pacer on the bk. Probably even figure out the status of the property. If the property was involved in a bk it was put into an estate for the entity who filed. There is what they call a stay on the property in residential cases for at least 30 days. Secured creditors in order to take the property are to put in a motion to lift the stay. There is usually a hearing to determine if this is done. There are different types of bk. Chp 7 & Chp 13. There are different things to know and understand. I would verify status with bk at pacer before sheriff office. As anything will have to be authorized before the sheriff does it. That is in a PERFECT WORLD. It may at least help you figure out if its worth putting more effort into. While R/E investing is about the same nationally the laws are different in each and every state. Bk is FED though so anything involved in bk will need to be verified thru the court nationally before a sale. I feel in real estate if one is truly involved in it these are two of the most important sites utilized. As there may even be updates found in the court that hasn't been put out to the county yet. As far as sheriff sales most people have probaby been approached by every investor in the county possibly the country. Many of the entities involved in this line of investment are cut throat and liars to the core. Some investors know block by block which places not to invest in. They take gang relationships into consideration as to wether or not to invest. This is important as you don't want to buy something thinking you will exit it and no one will buy it! Due diligence is so necessary :)