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Real property

sheriff's deed

A sheriff’s deed is a deed that transfers or conveys title (ownership rights) in property purchased at a sheriff’s sale. A sheriff’s sale is typically ordered by a court after a person or entity fails to pay a court judgment against them (a judgment debtor) or when the property is the subject of a mortgage foreclosure.

Laws vary from state to state, but a debtor whose property is the subject of a mortgage foreclosure that was sold at a sheriff’s sale may have the right to redeem the property or the right to redemption of the property—paying the amount due and keeping the property—until confirmation of the sale is signed by the judge and filed by the court. This redemption period is usually defined by state statute and may be referred to as a statutory redemption period.

The lender (bank) that is foreclosing on the mortgage is often the high bidder that purchases the property at a sheriff’s sale. If another party is the high bidder at the sheriff’s sale, the lender (bank) may be able to get a deficiency judgment against the debtor (borrower or mortgagor) if the sale amount isn’t enough to pay the balance of the debt—depending on the state’s law.

In Texas, a sheriff's deed is a legal document that conveys ownership of property sold at a sheriff's sale, which is typically the result of a court-ordered sale due to a failure to pay a court judgment or as part of a mortgage foreclosure process. Texas does not provide a statutory redemption period for properties sold at a sheriff's sale due to mortgage foreclosure. Once the sale is confirmed by the court, the previous owner's right to redeem the property is extinguished. However, Texas does have a redemption period for tax foreclosure sales, which is not applicable in the context of mortgage foreclosures. If the property is sold for less than the amount owed on the mortgage, the lender may seek a deficiency judgment against the debtor for the difference, subject to certain conditions and limitations under Texas law.


Texas Statutes & Rules

Federal Statutes & Rules

28 U.S.C. § 2001 - Sale of Property
This federal statute provides the general procedures for the sale of property under a federal court order, which may include sheriff's sales.

Under 28 U.S.C. § 2001, property that is ordered to be sold by a federal court may be sold at a public sale or a private sale. Public sales must be advertised in a manner consistent with the nature of the property and the circumstances of the case. The statute requires reasonable public notice of the sale to be given by the marshal or other officer conducting the sale. The terms and conditions of the sale are also to be published in the notice. The statute allows for the court to order a private sale of the property if it is in the best interest of the parties and the estate, subject to confirmation by the court. The statute also provides for a 10-day waiting period after the sale before the court confirms the sale, during which time objections can be filed and the sale can be set aside if it is not considered to be in compliance with the requirements.

28 U.S.C. § 2002 - Notice of Sale
This statute outlines the requirements for notice of a sale of property under a federal court order, which can include sheriff's sales.

28 U.S.C. § 2002 requires that notice of a public sale of property be given by the marshal or other officer conducting the sale. The notice must be published once a week for at least four weeks prior to the sale in at least one newspaper regularly issued and of general circulation in the county where the property is situated. If there is no such newspaper, then the notice must be posted at the courthouse and at three other public places in the county where the property is to be sold. This statute ensures that the public is adequately informed about the sale and has an opportunity to participate in the bidding process.

28 U.S.C. § 2003 - Terms and Conditions of Sale
This statute sets forth the terms and conditions that apply to the sale of property under a federal court order, including sheriff's sales.

According to 28 U.S.C. § 2003, the terms and conditions of a public sale of real or personal property must be announced at the place and time fixed for the sale by the marshal or other officer conducting the sale. The statute allows the court to fix the terms and conditions of the sale, including the requirement of a deposit by the successful bidder, which is not to exceed 20 percent of the bid amount. The statute also provides that the sale may be subject to confirmation by the court. If the terms of the sale are not complied with by the successful bidder, the property may be resold at the risk and expense of the defaulting purchaser.

28 U.S.C. § 2004 - Sale of Real or Personal Property
This statute provides additional details on the sale of real or personal property under a federal court order, which can be relevant to sheriff's sales.

28 U.S.C. § 2004 allows for the sale of real or personal property under a federal court order to be conducted by a marshal or by any other person or organization designated by the court. The statute specifies that the sale is to be made in the manner, at the time and place, and on the terms and conditions directed by the court. The statute also allows the court to direct that the property be sold in parcels or as a whole and that it be sold where the court is held or elsewhere as directed by the court.