Debt Collection Lawsuits: What is a Sheriff Sale?
Debt Collection Lawsuits: What is a sheriff sale?
A sheriffs sale is simply where someone takes a judgment to the sheriff and tells them they want to sell the Defendant’s car, house, etc.
Then the sheriff sets up the sale.
It works like a foreclosure sale, where they auction off the property and sell it to the highest bidder.
Once the property is sold, that money goes towards paying off any liens that are on the house first.
For example, let’s say you have a $200,000 house, you only owe $5,000 on it, and you have a $10,000 judgment on it.
If the property is sold for $30,000, then $5,000 will pay off the mortgage, some will be given to you as an exemption, and the rest will go towards the judgment until it’s paid off.
We’ve seen situations where someone has a paid for house, and even a paid for mortgage, and these debt collectors will do a sheriff sale to take their house.
Many consumers will say, “No, no, no, this is impossible! Nobody can take my house. This is my castle!”
Unfortunately, they can.
Sheriff sales aren’t as common, but we are seeing more and more of them.
Years ago, we would tell people that it’s possible for a sheriff sale to occur but it was a very small possibility.
We don’t say that anymore.
We’ve seen a lot of collection lawyers do this, even on small judgments.
We had a client who came to us the day before the sheriff sale.
He had a $100,000 house and a $5,000 credit card judgment.
The collection lawyers were going to take his house over a $5,000 judgment. Unbelievable isn’t it?
Sheriff sales are real and should be taken seriously.
They’re devastating when they happen.
If you have a judgment against you and the collectors are talking about a sheriff sale, you should proceed very carefully.
You’re reading this article, which means you are taking this seriously, and we want to commend you for that.
Even if you’ve just been sued, you need to figure out your game plan immediately.
You need to know what your options are.
The best way to figure out the best course of action for your unique situation is to get in touch with an attorney.
If you have any questions, you can reach us by phone at 1-205-879-2447.
Or, if you prefer, you can fill out a contact form and we will get in touch with you quickly.
We would be glad to help you and answer any questions you may have.
Hope this is helpful to you, and we look forward to hearing from you!
Have a great day.
PS — remember you want to avoid sheriffs sales and the best way to do this is to figure out a way to kill the lawsuit. We recommend getting our checklist for dealing with collection lawsuits and you can also watch our video where we answer over 150 questions about being sued in Alabama.
Brief description of your legal issue:
Had less than 2k in credit card debt with RFCU. I received a writ of execution in March, a judgement ruled against me, I did not receive a court summons. I contacted the attorneys office, told them I had no clue or notice of court date, they offered a payment plan of $865 then $150 a month until the sum of just over $3k was paid. I explained I was unable to do that, unemployed with no income but I had my Harley up for sell and as soon as it sold I would have more options , obviously, and I intended to pay the debt. I asked how long I had to pay in full to which the lady was unable to give me a date. Today I received a letter delivered in person from RFCU saying I have 10 days to vacate my property , thst RFCU purchased in a execution sale. I called RFCU and even though it’s their letter head they tell me to contact Howard Grisham’s office thst they sent the letter. I called and spoke with the same lady and she basically said they stated payment terms , I didn’t pay so here we are. What are my rights in this situation?