- Who sends it
- The sheriff, court clerk or officer who ran the sale gives it to the buyer, and it is usually recorded
- What it starts
- In many states, the redemption period, then a deed to the buyer if no one redeems
- Do this first
- Get a copy, and find the sale price, the interest rate and your last day to redeem
What this document is
After a foreclosure auction, the officer who ran the sale gives the winning bidder a paper. In states with a redemption period, that paper is often a certificate of sale or certificate of purchase instead of a deed. It shows that the bidder bought the home, subject to your right to buy it back.
The certificate is usually recorded in the county land records. You may get a copy, or you may need to ask the sheriff, the court clerk or the register of deeds for one.
A tax sale certificate is a different paper. If your home was sold for unpaid property taxes, see tax sale notice.
What it does and does not mean
- It is not an eviction notice. In several states, such as Kansas, Iowa (when the foreclosure allows redemption), North Dakota, South Dakota and Wyoming, you can keep living in the home during the redemption period.
- It is usually not yet the final transfer. The buyer's ownership becomes final only when the redemption period ends with no redemption, and then a sheriff's deed is issued or, in Minnesota, the certificate itself becomes the buyer's title.
- The amount to redeem starts from the sale price on the certificate, not your old loan balance. Interest and certain costs the buyer paid, such as taxes and insurance, are added.
- In Florida, a certificate of sale works the other way. It ends your right to pay off the judgment and keep the home. See the Florida entry below.
Which states use one, and what it starts
- Minnesota: the sheriff's certificate of sale lists the price, the interest rate and the time you have to redeem. It must be recorded within 20 days (10 days for a five-week redemption). The usual redemption period is 6 months, and 12 months in listed cases. If you do not redeem, the certificate becomes the buyer's title with no other deed.
- North Dakota: the certificate lists the price and the redemption period and is recorded within 10 days. The court then confirms the sale. You have 60 days from the sale to redeem by paying the amount bid plus interest at your mortgage rate. If you redeem, you get a certificate of redemption. If not, the sheriff's deed follows.
- South Dakota: the buyer gets a certificate, not a deed, recorded within 10 days (20 days for a 180-day redemption mortgage). The usual redemption period is 1 year from the sale. For a 180-day redemption mortgage it is 180 days from recording. The buyer does not get possession until the period ends.
- Wyoming: the buyer gets a certificate of purchase, recorded right after the sale. You have 3 months to redeem (12 months for agricultural land) by paying the price plus 10 percent yearly interest and certain costs. The sheriff's deed comes only after your period and a 30-day period for creditors pass with no redemption.
- Kansas: after the court confirms the sale, the sheriff issues a certificate of purchase. You can usually redeem within 12 months (3 months in some cases) by paying the clerk of the district court, and you are entitled to stay. The sheriff signs a deed when the period ends with no redemption.
- Iowa: in a foreclosure with redemption, the buyer gets a certificate and the deed waits. You usually have 1 year (less in listed cases) to pay the clerk the certificate amount plus interest at the contract rate and costs. In a foreclosure without redemption, the buyer gets a deed right away.
- Missouri: the buyer normally gets a trustee's deed. A certificate of sale is used only if the lender bought the home and your redemption bond was approved within 20 days after the sale. Then you have up to 1 year, and the deed waits.
- Illinois: the certificate of sale says it is subject to the court's confirmation. A deed comes only after the judge confirms the sale and the price is paid. Until the confirmation order you can still object, and if the lender bought the home for less than the redemption amount, you have a special 30-day right to redeem after confirmation.
- Colorado: the winning bidder gets a certificate of purchase on sale day, but homeowners have no right to redeem after a mortgage foreclosure. Title passes 8 business days later unless a junior lienholder files to redeem, and the public trustee then records a confirmation deed.
- Florida: the clerk files the certificate of sale promptly after the auction. That ends your right to pay off the judgment. You have 10 days to file an objection to the sale. If no one objects, the clerk files a certificate of title and ownership passes to the buyer.
HOA sales can use one too. In Nevada, the buyer at an HOA foreclosure sale gets a certificate that says the home is subject to redemption, and you have 60 days to redeem. See HOA lien notice.
Michigan works differently: the buyer gets a sheriff's deed right after the sale, but you can still redeem, usually within 6 months, and redeeming cancels the deed. See trustee's deed or sheriff's deed.
How to redeem
Ask the person your state names for the exact redemption amount in writing, well before the last day. Depending on the state you pay the certificate holder, the sheriff or the clerk of court. In Minnesota the interest rate is printed on the certificate. In North Dakota, if you disagree with the amount, you can deposit your own figure with the sheriff along with a written explanation.
When you redeem, get written proof and make sure it is recorded. In North Dakota and New Mexico this is a certificate of redemption. If no one redeems, the buyer gets the deed described on the trustee's deed or sheriff's deed page.
What to do this week
- Get a copy of the certificate from the sheriff, the court clerk or the county recorder. Write down the sale price, the interest rate, the buyer's name and the last day to redeem.
- Read your state's after the sale page for how long you can stay, who you pay and whether there is surplus money from the sale. See surplus funds notice.
- If you want to redeem, ask for the amount in writing and start lining up the money now through a refinance, a sale or family help.
- If you plan to leave, plan your move before the last day. Read notice to vacate.
- Call legal aid or a lawyer if you think the sale was not done right. Some states, like Florida, give only 10 days to object. See lawyers by city.
- A free HUD-approved housing counselor at (800) 569-4287 can help you look at your choices.
Scams tied to a certificate of sale
Certificates are recorded, so scammers can find you. Watch for:
- Anyone who asks for a fee before you have signed an agreement with your servicer. A company that is not your lawyer cannot charge for mortgage relief until then.
- Anyone who tells you to stop talking to your servicer, your housing counselor or your lawyer.
- Anyone who wants payment by wire, cashier's check or a payment app, or who asks you to sign over your deed.
- Anyone who says they are with the government or your lender without proof. Call the number on your own statement or letter to check.
- Anyone who offers to buy your redemption right for a small payment. The Kansas Attorney General warns that scam artists buy these rights for little or nothing.
- Companies offering to recover surplus funds for a large percentage before you have checked how to claim them yourself.
See foreclosure rescue scams. Report scams at ReportFraud.ftc.gov.
What it is called in your state
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
Do I have to move out once a certificate of sale is issued?
Not in many states. In Kansas, Iowa (with redemption), North Dakota, South Dakota and Wyoming you can stay during the redemption period. In Florida there is no redemption period after the certificate of sale, and the buyer can move toward a writ of possession once the certificate of title is filed.
How much does it cost to redeem?
Usually the price on the certificate plus interest and certain costs the buyer paid, such as taxes and insurance. The rate and the costs depend on your state. Ask for the exact figure in writing.
What is the difference between a certificate of sale and a sheriff's deed?
The certificate shows the buyer won the auction subject to your right to redeem. The deed transfers ownership for good and usually comes only after the redemption period ends with no redemption.
Can I get money from the sale?
If the home sold for more than the debt and costs, there may be surplus. Your state's after the sale page explains how to claim it, often for free.
Keep reading
- Late notice and early intervention letterThis letter is a warning, not a foreclosure. Federal rules make your servicer reach out early and tell you about help. In most cases a foreclosure cannot start until you are more than 120 days behind, so this is the best time to act.
- Breach letter (demand or notice of intent to accelerate)A breach letter says you are in default and gives you a date to catch up. If you do not, the lender can call the whole loan due and move toward foreclosure. Many standard mortgages and deeds of trust require at least 30 days to cure.
- Notice of defaultIn many states that foreclose without a court, a recorded notice of default is the official start of the foreclosure. It is not a sale and not an eviction. It starts a waiting period before a sale can be set, and you can usually still catch up or apply for help.
- Notice of intent to forecloseMany states make the lender send a warning letter before it can start a foreclosure. These letters often give you a set number of days, a cure amount and a list of free counselors. The deadline in the letter matters, so act on it now.
- Lis pendens (notice of pendency)A lis pendens is a public notice, filed in the land records, that a lawsuit or foreclosure affecting your home is pending. It does not mean the home is sold or that you must move. It usually means the court papers are coming or have already been served.
- Foreclosure summons and complaintA summons and complaint means the lender has sued to foreclose. You have a short, firm deadline to respond in writing, often 20 to 30 days from the day you were served. Missing it can let the lender win without your side being heard.
Sources
- Minn. Stat. § 580.12, certificate of sale (Minnesota Revisor of Statutes)
- N.D.C.C. chapter 28-23, including §§ 28-23-11 and 28-23-12, sheriff's certificate (North Dakota Legislature)
- RSMo § 443.440, certificate of sale and deed on failure to redeem (Missouri Revisor of Statutes)
- HUD: Avoiding foreclosure
- CFPB: Find a housing counselor
- FTC: Mortgage relief scams
- FTC: ReportFraud.ftc.gov