The short version
If a borrower defaults on a mortgage, the lender sues to foreclose. When the court grants the foreclosure judgment, it also orders the property sold at public auction. Whoever runs the sale (often a master commissioner, sheriff, or clerk of court) advertises the date, accepts bids on sale day, and delivers a deed to the high bidder once the sale is confirmed.
How it works, step by step
- Judgment. The court enters a foreclosure judgment that names a sale date, the minimum bid (usually two-thirds of appraised value), and the deposit required.
- Notice. The sale is advertised in a newspaper, posted at the courthouse, and published online for several weeks.
- Sale day. Bidders gather (in person at the courthouse or online, depending on the county). Bidding starts at the upset price and goes up in fixed increments.
- Deposit. The winner posts a deposit on the spot — typically 10% cash or cashier's check — and signs a memorandum of sale.
- Confirmation. The court has 30 days or so to confirm the sale. Once confirmed, the balance is due and a commissioner's or sheriff's deed is delivered.
- Possession. If the property is occupied, an eviction may be required. The buyer takes title subject to any senior liens that survived the foreclosure.
Who actually runs the sale
- Master commissioner — Kentucky. Appointed by the circuit court; conducts the auction at the courthouse and submits a report to the judge.
- Sheriff — many states. Sells the property under a writ of execution; takes the deposit and reports back to the court.
- Clerk of court — Florida and others. Runs an online auction at a site like realforeclose.com on a scheduled date.
What you need to bid
- Cashier's check for at least the required deposit (often 10% of your max bid).
- Photo ID and, for some counties, a bidder registration card.
- Title research done before sale day. The sale clears the foreclosed lien, but senior tax liens, IRS liens, HOA dues, and municipal code liens may survive.
- Cash reserves for the balance of the bid, plus closing costs, plus any survival liens.
Risks every bidder should know
- Title surprises. The foreclosure deed extinguishes some liens but not others. Always pull a current title report.
- Occupied property. If a tenant or owner is still in the house, you may need to evict — that takes weeks and money.
- No inspection. Most judicial sales are bought sight-unseen, "as is."
- Redemption. Some states allow the borrower to redeem (buy back) the property for a period after the sale.
- Confirmation risk. Until the court confirms the sale, the deal can fall through.
What REIntel does for you
REIntel pulls judicial-sale dockets from every covered county every morning, joins them to PVA assessments, FEMA flood maps, school ratings, and HUD rental data, and presents the result in a searchable, filterable feed. You see where the sale is, what the recovery amount is, who the parties are, and a one-page printable handout you can take to the auction.
Coverage today: Kentucky — 30 counties live (master commissioner sales). Florida — 26 counties live (clerk-of-court online sales).