I respectfully disagree with Oggi's response to you. Just because the loan is in default, as long as there is equity the lender will be paid in full and therefore does not have to agree to the sale.
Now to your question. You might want to seek legal advice, if you will be closing close to the auction date. I am not an attorney and cannot tell you if there are any legal pitfalls. From experience, this is what I know.
1. Make sure you close well before the auction date.
2. Make sure funds, including all penalties and legal fees incurred by the bank, are forwarded to the bank at closing and at least 5 days before the auction date.
3. Make sure you have title insurance issued on the date of closing. This should protect you in case the bank incorrectly proceeds with the foreclosure. The title company will take of your legal defense to get the property reinstated.
Hope you truly enjoy your new house. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty