Mortgage Foreclosure (Lev Fac)

The most common type. A bank or mortgage servicer forecloses after the homeowner stops making payments. The opening bid is usually the outstanding loan balance plus fees, interest, and legal costs.

• Deposit: typically 20% of the winning bid at time of sale
• Balance due within 30 days (varies by county)
• Junior liens may or may not survive the sale

Tax Sale (Monition)

Filed by the city or county for unpaid property taxes. These often have lower opening bids since they represent back taxes, penalties, and interest rather than a full mortgage balance.

• Deposit: 100% of the winning bid due at time of sale
• The previous owner may have a redemption period
• Budget for a quiet title action — title insurance can be difficult to obtain

HOA / Condo Association Lien

Filed by a homeowners association or condo association for unpaid assessments and dues.

• Opening bids may be relatively low (outstanding assessments only)
• Existing mortgage liens may survive depending on lien priority
• Research state superlien statutes for priority rules

Judgment Sale (Vend. Exp.)

Filed to satisfy a court judgment against the property owner, such as from a lawsuit.

• Deposit: typically 20% at time of sale
• Existing mortgage and tax liens typically survive

Research Checklist

• Title search: Check for all liens, mortgages, judgments, and encumbrances. Understand which survive the sale.
• Property assessment: Review the county assessment to understand the property's tax-assessed value (use our detail pages for this).
• Market value: Check comparable sales on Zillow, Redfin, or Realtor.com to estimate current market value.
• Tax and sewer balances: Check for outstanding taxes, sewer bills, and water bills that may transfer to the buyer.
• Code violations: Check the county's code enforcement records for any open violations.
• Drive-by inspection: Visit the property to assess its condition from the exterior.
• Occupancy status: Determine if the property is occupied. You may need to evict at your own expense.
• Arrange financing: Have all financing arranged before the auction. Being pre-approved is not sufficient.

Required Items

• Government-issued photo ID — valid driver's license preferred
• Certified funds — cashier's check or money order for the registration deposit (amount varies by county — see county-specific info below)
• Checkbook — personal or business checks for the balance of the deposit (no cash accepted at most sales)
• Bidder registration forms — print and complete before arriving to speed up registration
• Property research notes — your list of properties, maximum bid amounts, and lien information

Registration

Arrive early — registration typically opens 1-2 hours before the sale starts. You'll need to present your ID, certified funds, sign the bidder rules form, and receive a bidder number.

The Auction

Properties are auctioned one at a time. The auctioneer will announce the property, the plaintiff's opening bid, and then open the floor for bids. Bidding continues until no one raises. The highest bidder wins.

Deposit Payment

If you win, you must immediately submit your deposit. For mortgage foreclosures this is typically 20% of your winning bid. For tax sales, the full amount is due immediately. Your certified funds and checkbook will be collected on the spot.

After the Sale

The sale must be confirmed by the court (typically 4-6 weeks). The balance of payment is due by a specific date (usually the third Monday of the month following the sale). Once confirmed and paid in full, you'll receive a sheriff's deed.

Pay the Balance

The remaining balance (after your deposit) is due by the court-specified date. Late payment typically incurs a fee. Payment must be via cashier's check.

Court Confirmation

The sale must be confirmed by the court. During this period, the previous owner or other parties may challenge the sale. Once confirmed, the sheriff issues the deed.

Taking Possession

• Record the sheriff's deed with the county recorder's office
• Change the locks and secure the property
• If the property is occupied, you may need to go through the formal eviction process at your own expense
• Transfer utilities and insurance into your name immediately
• Properties purchased at sheriff sale should be deeded within six months of confirmation

Title Considerations

A sheriff's deed may not provide the same protections as a warranty deed. For tax sales especially, you may need to file a quiet title action in court to obtain marketable title and qualify for title insurance. Budget $1,500–$3,000+ for this process.

Key Risks

• Hidden liens: Tax liens, utility liens, HOA liens, or other encumbrances may survive the sale and become your responsibility
• Property condition: You cannot inspect the interior — there may be significant damage, environmental hazards, or needed repairs
• Occupants: The property may be occupied by the former owner, tenants, or squatters. Eviction costs time and money
• Redemption rights: In some sale types, the previous owner may have a legal right to reclaim the property within a specified period
• Title issues: A sheriff's deed may have title defects that require legal action to resolve
• IRS liens: Federal tax liens have a 120-day right of redemption
• Overbidding: Emotions at auction can push bids above market value — set a firm maximum and stick to it

Sale Details

• When: Second Tuesday of each month at 9:00 AM
• Where: City/County Building, 800 N. French Street, 1st Floor, Wilmington, DE 19801
• Registration: Opens at 7:30 AM, closes at 9:15 AM
• Registration deposit: $10,000 in certified funds (cashier's check/money order) — collected only if you win
• Capacity: Fire marshal limit of 152 persons — arrive early
• Contact: Sheriff's Office — (302) 395-8450

Deposit Requirements

Balance due: Third Monday of the month following the sale. Late payment fee: $500.

Fee Schedule (Effective July 2024)

Official NCC Resources

• NCC Sheriff Sales Page
• NCC Sheriff's Office
• NCC Fee Schedule (July 2024)
• Bidder Auction Rules (PDF)
• CivilView — NCC Sale Listings