You are here:

Foreclosure/Buying from Sheriff's Auction


I am looking at buying a house at the county sheriff sale. I have done extensive research on the home. In my county you have to pay 10% at the auction, and the rest within 30 days, and being pre-approved for the loan was permissable from what I was told.

My question revolves around the loan. Does that initial 10% in any way go towards the loan? Say my winning bid is 80k, I pay my 8k that day, obviously my loan with be for 72k. Does that 8k count as 10% down on my loan, since its really own a placeholder on my loan, or do i have to come up with an additional 7200 for the lender to have 10% down on the loan?

Hey Alex,

Whenever you buy a home at an auction, the money that you put down is a deposit and goes towards the purchase price of the home. You deposit also counts as your down payment, or part of it depending on how much you are needing to put down.

Good luck at the auction.



All Answers

Answers by Expert:

Ask Experts


Brian Pitcher


I can answer all questions in regards to short sales, strategic default, foreclosures, loan modifications, and most questions regarding real estate law.


I have closed well over 100 short sales in the past 3 years and that is the work we primarily do. We teach people how to keep their home if they can or how to bail on it in the best possible way without any recourse. I have taught many public seminars to accountants, loan mod counselors, attorney's and also many other real estate agents all over the country. I also know how to deal with the very tough second mortgages in the negotiations as well as mechanic liens and default judgements.

I have a bachelors in Spanish with a minor in Economics from the University of Utah. I have also been a Realtor for 8 years closing well over 200 transactions. I am a KW instructor for Short Sales and Foreclosures.

©2016 All rights reserved.