What Happens If My Property Goes To Foreclosure Auction

We have learned a lot on the topic of foreclosure auctions over the last decade.  It’s not a very good option for anybody involved. The penalties can be substantial. A lot of people wonder what happens when a home goes through this process. Seeking advice on ways to avoid the whole circumstance really is your best bet because of the consequences involved. Let ‘s look at what happens when your home goes to auction, and we’ll also cover what someone can expect if they are facing this destitute situation.

Foreclosure auctions are usually the last step in a very long process and are considered the end of the line. Generally, at this point, there have been many discussions, and attempts made to work through the difficult situation.

The borrowers may have discussed many options up to this point including a short sale,  a  loan modification denial, and even bankruptcy. Determining how much time you have before you need to vacate the property will be dependent upon how backlogged the bank is within the department handling the foreclosure determining the value of a home.  If there are many homes up for auction and the area is hard hit, the process may take even longer.

The reason the bank uses the foreclosure process is primarily to try and recoup as much money as they can from the original agreement.  The bank doesn’t always want to take the action of foreclosure unless it’s going to be profitable for them to do so. In some instances, the amount of equity in the home favors the bank. In A situation like this, the bank will likely recoup the amount they’re seeking covering their cost plus the remaining amount owed.

The bank can move quickly if they feel the home will sell immediately. This quick pace can drastically reduce the amount of time the occupants have before they need to leave the property.  If can be complicated in a multiplex. People in the situation should be making alternative arrangements as quickly as they can. The time it takes to move our through auction could be between 30 and 120 days.

There are differences between judicial and non-judicial foreclosures. The judicial foreclosure process involves the courts and can apply to any state. The lender will file a civil lawsuit against the person who purchased the home, and the court will begin the process. The courts record everything through the court system using whats otherwise known as a LIS pendens document. The court will send the final date for the owners to pay the mortgage. If the current owners don’t meet the deadline, then the Lender is awarded the property. In the next stage, the courts will issue an NFS or notice of foreclosure document. This form will release the time and date for the auction process to begin. A non-judicial foreclosure is distinct to specific States and allows a third party to handle the trust or deed. This Clause allows the lender to advertise and sell the property as an auction not involving the courts.

The owners of the hall should vacate the property as quickly as possible to avoid an eviction notice. If the owners are still on the premises when the home goes to auction, the bank will Initiate the eviction process. A couple of things happen at this point. First, the eviction notice will go to the local sheriff’s department, and they will come down and remove the occupants. Secondly, the courts will document the eviction notice.  If it’s a judicial process, having an eviction notice attached to a foreclosure process will drastically impact your credit rating score.  This information will remain available for seven years to any lender. Having an eviction notice on your record In addition to the foreclosure will make it very difficult for any lender to take a risk working with you.

To conclude, two types of foreclosures can impact the auction process, Judicial and non-judicial. The amount of time required to leave the premises when your home goes on auction can vary between 30 and 120 days. You will want to vacate the property before an eviction notice comes down because the sheriff department can come and remove you forcibly if needed. Exploring other options to avoid foreclosure is encouraged. It would be better to work with the bank instead of against them.

About 

Ernest Gerberich is an ambitious Real Estate Investor whose goal has always been to help people. With the support of many communities, Ernest combines his success in the luxury real estate market with his mission of philanthropy.