How Do You Stop/postpone A Foreclosure Auction?
How do you stop or postpone the Sale of a house that is going to Auction? I am looking at a house that is in Foreclosure. It's FMV is $209K and they owe $164. The Auction is on Jan 18th so that only gives me a week to work with the seller. So how do I postpone the Auction date? I need more time.
Thanks,
Brandon
In NJ, the owner has the right to adjourn the sale date for up to 4 weeks total (2 adjournments of 2 weeks each). Check to see if your state has similar owner rights. Also, the owner can file BK which will stay the sale as well. Lastly, you can attempt to contact the bank if you have a contract with the owner to give you more time. Hope this helps. Good luck!
Ed
You will need to speak with the lender and find out how much $$$ it will take keep the property from going to auction. If your deal sounds really promising to them, they may work with you.
I put up significant ($15K) non-refundable money for a postponement of 30 days. We closed on day 29! The money went toward paying off the loan and I was credited for that. You should talk to the loss mitigation department and you will need the seller's cooperation to do so.
Do you have to present some sort of an authorization to release in order to speak with the bank on behalf of the homeowner?
1) Have the owners file for bankruptcy 2) get authorization to release information form signed by the owner and ask the bank to postpone because you are going to buy it, but just need a couple more weeks to pull the deal together.
You can use some of the following to delay or stop a foreclosure action.
Special Forbearance
Loan Modification
Partial Claim
For FHA Loans - The lender might be able to help you receive a one-time payment from the FHA Insurance fund. You may qualify if your loan is at least 4 months but no more than 12 months past due and you are able to begin making full mortgage payments.
The funds must eventually be repaid. You will be asked to sign a promissory note and HUD will place a lien on your property. The note is interest free, and can stay attached as a lien that becomes due when you pay off the first loan or when you sell the property.
For VA Loans - Financial counseling designed to help you avoid foreclosure is available at VA Regional Loan Centers. Call 1-800-827-1000 and ask for the phone number of the Loan Service Representative that can assist you.
An Alternative, HUD-Approved counselors - HUD-approved counseling agency. A counselor can help you determine which options might be available and negotiate with the lender to work out a repayment program. Call 800-569-4287, weekdays between 9:00 am to 5:00 pm Eastern Standard Time.
Bankruptcy is an option that can stop foreclosure, at least temporarily, and give you some leverage to resolve the foreclosure.
In the military, there are special rights under the Soldiers and Sailors Civil Relief Act, to stop the foreclosure and you also may be eligible for a reduction in the interest rate.
Procedural errors in the lender's foreclosure or lender errors when you acquired the loan could permit you to file a lawsuit to enjoin or stop the procedure.
[addsig]
You can find out what it will take to reinstate the loan. Some banks will require the entirety of what's past due and some will take less, while rolling the remainder into the loan payments. You can then pay that amount to reinstate the loan (which would be your earnest money deposit) and buy plenty of time to complete the deal. If you choose this route, create and record a 2nd mortgage. If something should fail in the purchase, you will be in the 2nd lien position (assuming there are no others already).
P.S.
That 2nd mortgage should be for maybe 30 days. So, if the sale doesn't close within 1 month, the owner must repay you or immediately be in default, at which time you can foreclose on him.
So, BGROSSNICKLE, or any other posters out there have a sample owner authorization form that they would be willing to share? Thanks everyone.