Following a foreclosure auction, can a house be saved?
Some mortgage loans are secured with a deed of trust (sometimes called trust deed), instead of a regular mortgage. This is an important difference, as the deed of trust normally contains a “power of sale” provision, which allows the trustee to sell the property without having to file a suit or go to court. The deed of trust requires the borrower to deed the property into a trust. The trustee will be instructed to keep the deed until the loan is paid off or the buyer defaults. If the loan is paid off, the trustee will return the title to the borrower. If the borrower defaults, however, the trustee will be instructed to sell the property; the sale proceeds will then be used to pay off the remaining loan balance. Many states allow deeds of trust. Some states allow the regular mortgage itself to have a “power of sale” provision. There are also varying local rules on how the sale is to be conducted. Colorado requires a public official, called the public trustee, to exercise the power of sal
We have a similar law in Colorado, only here, your Right of Redemption is only 75 days. Typically (I use our state’s process yours may differ) the first thing you have to do is contact the County Trustee and file a form called the “Owner’s Intent to Redeem.” Once the trustee has that form they will find out exactly how much money is now owed to redeem the home. For example, you may have only owed $130,000 on the house, but at public aution it sold for $149,000. When the trustee gets back to you with how much you owe, it will be $149,000 plus interest, atty fees and other fees. If you have the cash in the amount they now require, you can take it to the Trustee and get your house back. If you don’t you can still put your house up for sale, have someone buy it from you, use that money to pay the Trustee, and although you don’t have the house anymore, and although you still have a foreclosure mark on your credit, your loan will be paid and your credit will improve much sooner. I have seen
Yes it can be saved. But there should be no bidders. In fact once you’re on the auction platform, there is a great chance you’ll get full and final settlement benefit if you can get a buyer who can match the auction price. Citibank is the best bank for negotiations. Even StanChart will consider. But i’m not sure about other banks.
