Foreclosure in 93291>Question Details

Hope, Home Owner in 93291

What happens if your home does not sell at public auction? How long are you allowed to stay in your foreclosed home?

Asked by Hope, 93291 Thu Jul 7, 2011

The initial sale was postponed when I filed bankruptcy. Now that my bankruptcy has been discharged, what happens if my home does not sell at the public auction?

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If your house has gone for auction then that is the last step for the foreclosure process. The bank will likely 99% of the time bid and take the property back when there are no other outside bidders. By this process the foreclosure is complete. Now the issue of how long you can stay depends on your bank and how backlogged they are in the foreclosure department, and how desirable the property is. If they feel it will sell fast, then they will take action fast. But if the property is in a hard hit area they may not take action very fast. First they have to start the process of eviction. It is best that you find alternate housing once this process starts, asap before the eviction shows on your credit report. Generally an eviction can take between 60 to 120 days from the original filing date by your lenders, depending on your local courts, and whether you dispute the eviction notice or start litigation with the lender, which may buy you time. But in the end they will take it back. Once they are granted full eviction, the eviction notice will go to the local sheriff department which will come by and take the property back and lock and seal it. You may also at times (very rarely) contact the bank to see if they are willing to rent back the house to you. Above all keep your spirits up, as this is not the end of the world. Some of the most successful people in this country have been in this situation and they all recover. Good Luck!
2 votes Thank Flag Link Thu Jul 7, 2011
I don't endorse free rides as a rule. I feel we all have an obligation to pay our debts; especially the roof over our heads. There's so many folks today that don't have a roof over their head who don't have the option of staying in a home they're no longer paying for.

But having said that I am very vehement about the way in which the lending institution has dealt with this real estate debacle from the beginning. It is truly an Obamanation. Lot's of folks had their loans shoved down their throats because some greedy lender wanted to make a commission.

Still other borrowers knew when they signed on the bottom line that they had no more business purchasing a 400k home on a 40k salary than the Good Humor Man had going to the moon in an ice cream truck. I guess I've taken the long way around a straight forward answer.

If your bank hasn't sold the home you're living in you could probably stay there until they do. Most banks would rather have someone residing in the home than to have it vacant and deteriorating or being occupied by squatters or druggies

Just do one thing. Take care of it. Don't pull out the copper wiring and plumbing. Don't steal the appliances or granite counter tops. Don't throw concrete down the toilet. Don't punch holes in the drywall or rip off roofing. Remember, You're getting a big break by not having to pay anything for the roof over your head. How many people do you know that are that lucky.

I've seen folks stay in their homes since '07 right here in San Diego. In fact I know of a developer in Rancho Santa Fe who's been living in a 10,000sf estate on 10 acres for 5 years absolutely free. Why? He was smart enough to plant grapevines and use this spec home that he built and couldn't sell as his resident office.

When the bank saw how well the property was being maintained and how quickly a new vineyard would go to waste if no one was there to tend to it they made an executive decision to let him continue to reside their until they could off it.

The home was appraised at $5 million dollars in it's current condition. Had it become abandoned and turned derelict it would have lost half of its value. Do the math. What's the monthly loss on 2.5 mil over a five year period. The bank is much better off allowing the developer to stay there and maintain the property don't you think?

Only in America!
1 vote Thank Flag Link Thu Jul 7, 2011
The Market Crashed under the Bush administration. Selective memory is a nice thing to have. OBAMANATION??? Please.....
Flag Mon Apr 28, 2014
It will sell, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Thu Aug 30, 2012
This is more of a question for a lawyer; however, I will offer some advice. It depends on what type of a BK you filed. You can still pay the bank for your mortgage or you can find somewhere else to live. Remember, a bank wants to be paid no matter what so you always have the option of continuing to pay the bank whatever your payment is.
0 votes Thank Flag Link Thu Aug 30, 2012
Dear "Hope",
I'm a Realtor in Visalia with Keller Williams Realty. If you'd like to give me a call I can take a look at exactly where you are in the process and give you some guidance from there. My number is 559-804-1963. You can also email me at karendean@kw.com.
What usually happens when a home goes to auction, if it doesn't sell, it will often get offered to an REO (foreclosure) agent in this area. That agent usually has about 24-48 hours to accept the property into their list of inventory as a pre-list property. Then the agent has about 24 hours to determine occupancy. (To find out who is living in the property,if the occupant is a veteran or active duty military, and if occupied by tenants or previous owner. The Real estate agent will ask you when you plan on vacating the property. If you have not made plans to move and in need of financial assistance in order to secure another home to rent the bank may offer you relocation assistance to help with moving expenses or first months rent plus deposit. In return you are required to leave the property in clean condition. All of your personal property must be removed and you must leave all appliances, (other than personal property such as refrigerators and/or washer & dryers etc) and all light fixtures etc. So you would leave the property in clean condition as if you were moving from a rental and hoping to get your deposit back. Floors vacuumed, bathrooms clean, etc. Usually in order to receive financial relocation assistance or "cash for keys" you will be required to move within 30 days or sooner. The longer you stay on the property the less the bank will offer you in the way of assistance. Some may not offer you any assistance at all and will start eviction proceedings immediately.
If you would like more information, feel free to give me a call. I'd be happy to see what I can find out for you.
Karen Dean 559-804-1963
email: karendean@kw.com
0 votes Thank Flag Link Thu Feb 2, 2012
hmph....Keller Williams messed up our short sale, by not giving the lender the last offer, that would have been approved....after postponing the foreclosure sale 2-3 times...then it went to auction...didn't sell...NOW WHAT???
Flag Wed Oct 2, 2013
Hi, You may stay in the house after sale date till a sherif comes and tell you to move or banks lawyers take you to court and in court they tell you when to move . They may offer you cash for keys. do not move without one of these.
Your other option is to short sale your property which takes 3-8 months and with Hafa program you may get $3000.00 for your moving cost.
Simi
949-233-1111
0 votes Thank Flag Link Fri Jul 8, 2011
The Bank will start all over again.

Maybe you should too: I've heard that the difference in time, between a Shortsale and a Foreclosure, can be 1 year (till you can buy again.) That's one difference.

They will schedule another Trustee's sale soon.
Maybe you should consider a Shortsale.
It will hep you with you credit and it could give you another year in the house.

I would urge you to call a Realtor and look at your options.

Good luck and may God bless
0 votes Thank Flag Link Thu Jul 7, 2011
If the bank that held the original mortgage(s) continues to be owed the debt, they will most likely bid on the property to preserve their asset and mitigate their loss. If they failed to do so, they would end up discharging 100 percent of the debt, which is why they will be bidding if no one else bids.
0 votes Thank Flag Link Thu Jul 7, 2011
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