sheriff sale

[kingkevin]

Looking to put a bid on house that is up for sherriff's sale. I do know that house has 2 mortgages on it. First mortgage is 35k and second is 20k. House is not appraised yet for sale but on county auditor's site it is appraised at 55k.

What happens if I have the winning bid of lets say 45k? From what I understand so far and correct me if I am wrong. The money goes to pay of taxes first, fees ***cociated with sale, primary mortgage, then goes to second mortgage. However, in this case there is a 10k debt on the second mortgage. Who pays for that gap? Does the second mortgage company come after the original owner of the deed? Or does the winning bidder have to pay the 10k off to get the deed free and clear?

An extra question because I do know the current owner who is loosing the house if house should go above the pay off on the loans will he get the money back from any profit?

thank you in advance

[Linda P]

What happens if I have the winning bid of lets say 45k? The money goes to pay of propertytaxes first, fees ***cociated with sale, primary mortgage, then goes to second mortgage.
The pay off order looks correct.

However, in this case there is a 10k debt on the second mortgage. Does the second mortgage company come after the original owner of the deed? Or does the winning bidder have to pay the 10k off to get the deed free and clear?
If the foreclosure is done correctly, all mortgages & liens are wiped out at the sheriff's sale. (Other than an IRS lien - they have 90 days (? or is it 120?) for a right of redemption.
The second mortgage holder will be at the sheriff's sale bidding up the property (to protect their interest). If bidding falls short of the debt (taxes, 1st, 2nd and all liens), usually the second mortage holder buys back (gets stuck with) the property. They can go after the owner for the difference (in your example, $10k). Then they would put the property in the hands of a real estate agent and sell it for whatever they can get for it (they have high hopes of recouping their loses).

if house should go above the pay off on the loans will he get the money back from any profit?
Yes, if a freak thing happens and the bidding covers all debt (taxes, 1st, 2nd and all liens), the owner would get the proceeds from the sale.

[ohiolandlord]

I am starting to post the Ohio statute governing such sales here

http://www.ohiolandlordtenant.com/foreclosure_sale_of_lands.html

and for a listing of sheriffs sales in Ohio Counties go here

http://www.ohiolandlordtenant.com/sheriffs_sale.html