Simulation: a fictional property for practice.

A California sheriff’s sale: what does the notice tell you?

A court ordered a house sold in a judicial foreclosure. The notice says it’s sold subject to a right of redemption.

A fictional house at a sheriff’s sale after a judicial foreclosure in California.

• Sale: Sheriff’s sale (levying officer) after a judicial foreclosure, California
• Notice: Subject to a right of redemption; the sale won’t cover the full debt
• Your bid: $380,000
• Payment: Cash, certified or cashier’s check

Mission 1: What do you get on sale day?

The notice says the sale is subject to redemption and won’t cover the debt. What happens?

• A certificate of sale. The owner can redeem for 1 year, and I get the deed only after that
• A deed the same day

If someone redeems, you get your price plus taxes, insurance, upkeep and some senior payments, with interest, generally 10% a year (CCP 729.060).

Mission 2: Paying for it

Your bid is over $5,000. How can you pay?

• In full at the sale, or a deposit of $5,000 or 10%, whichever is greater, with the rest plus costs and interest within 10 days
• A deposit now and a mortgage in 60 days

You have no right to possession until you pay in full.

Mission 3: The redemption year

What can you sensibly spend on during the year?

• Taxes, insurance and needed upkeep, with receipts
• A new kitchen to raise the value
• Collecting rent from whoever is in possession, knowing I repay it if the owner redeems

Liens senior to the one being foreclosed stay with the property. Get a title report before you bid.

Would you bid $380,000?

Buy, investigate or pass? Work through the drill to see what an experienced investor would weigh.