Figure 2 shows the percentage of twines that have a second sale recorded after the sheriff's sale. The trends show that banks, investors, and nonprofits resell properties gradually over the 24 months after the auction.
Almost half of the previously auctioned homes arc recorded in the data as having been vacant for 90 days or more at the time of their first sale after the sheriff's sale (figure 3).
The foreclosed homes in high-poverty areas are far less likely to be reoccupied at any time 18 to 60 months after the sheriff's sale. "The very high vacancy levels in high-poverty neighborhoods are partly a reflection of Cuyahoga County's stagnant population.
As the analysis here illustrates, homes that have been through a sheriff's sale have very high vacancy rates for a year and a half afterward.
Once judgment against the borrower is obtained, the lender must comply with specific notice and advertising requirements before a sheriff's sale can be held.
The general rule for lenders bidding on property being sold at a sheriff's sale is that the foreclosing lender should bid up to an amount equal to the lesser of (1) the fair market value of the property (determined by a recent appraisal) or (2) the sum of (a) the amount of the lien in question plus (b) all prior liens to be divested by the sale plus (c) costs.
It is important for a lender to distinguish between the issue of whether a particular lien is divested at a sheriff's sale, as opposed to whether a particular lien is a superior lien for purposes of distribution of proceeds from the sale.
Lenders should not forget the possibility that the transfer of title for the mortgaged property pursuant to a sheriff's sale may be subject to transfer tax.