from the auction? If yes, whats going to happen with my previous loan on that house?
Thank You!
2007-08-16 09:33:50 · 13 answers · asked by premo_90066 1 in Business & Finance ➔ Renting & Real Estate
Even if you "win" the house back at auction, you will still be responsible for the amount that is left over from the past loan. I would seriously suggest that you make all past payments and try to keep it from the auction block or refinance it if possible.
2007-08-16 09:38:43 · answer #1 · answered by Ollie's Mommy 3 · 1⤊ 1⤋
You didn't say what type of auction if its a trustee sale on a deed of trust and there is no right of redemption on this type of sale, a sheriff sales have a 2 year redemption period . Yes you can but the opening bid will be balance owed on loan + back payments + late payments + trustee fee and it's all cash and you still have to be high bidder. The trusee is acting on behalf of the lender. If the house sells at auction the loan and all owed will be paid by the high bidder and your loan is gone. There still will be a forclosure on your credit report. If the house sells for more than owed you can claim that money, it will be held in a trust account and you will have to contact the trustee that handled your house. If the house does not sell then it goes back to the lender and the lender will try and sell the house. If the house sell for less than owed then the lender may come after you for the difference on a judgement.
2007-08-16 09:46:41 · answer #2 · answered by Leo F 4 · 0⤊ 0⤋
Yes, you can bid for your own house at the foreclosure auction.
If you win the house at auction, you still might be subject to a deficiency judgment. This occurs when the property at the auction doesn't get the amount required to pay off your original loan. You could still be liable for this amount, if you don't work something out with the lender.
2007-08-16 09:44:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It all depends on what state your home is in.
In CA for example, you could try to buy your home at the auction, you'd have that right. You would only owe money to the lender if you have ever refinanced the home. Any amount that was left unpaid after the foreclosure costs and auction will be counted as debt forgiveness (unless they receive the deficiency judgement mentioned above if you had a refinanced loan) and you'll receive the 1099 that will require you to count the forgiven amount as income.
Best of luck.
2007-08-16 10:35:04 · answer #4 · answered by Ben V 2 · 1⤊ 0⤋
You are not winning your house back, you are keeping it...so now that we have that clear...
After a forclosure auction there is usually a redemption period (this is for mortgage foreclosure, not tax foreclosure...with tax foreclsoure there is no redemption period). Usually the redemption period is 6 months and you have that amount of time to bring the payments current pay any fees and requalify for the mortgage. If you have abandoned the home this is a different story.
You do have options before the house goes to foreclosure though...check out this website for some ideas to keep your house off the auction block:
http://www.hud.gov/foreclosure/index.cfm
2007-08-16 09:43:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
First of all bank will put your home on " power of sale " which is exactly what you call auction. I would show you calculation as follows. Your House price 300,000 ( down 10000 + 290000 mortgage ) and after let's say 1 year outstanding mortgage is 280000.
If bank gets 280000 ( generally power of sale house sells cheap ) then they will keep full amount towards their payment, and you will have nothing.
You can only "WIN" by avoiding this auction, and your financial planner of good morgage broker can help you in a great way.
2007-08-16 09:42:45 · answer #6 · answered by dj 1 · 0⤊ 0⤋
No point in bidding on your own house. Whomever buys the property will be responsible for any liens on the house. In essence you need to start paying back what you owe to keep the house from going to auction. If you bid on it yourself you will still owe the same amount.
2007-08-16 09:48:23 · answer #7 · answered by geistswoman 3 · 0⤊ 0⤋
that is fairly uncommon, yet some lenders now, after foreclosure, will do lease-backs to tenants. you are going to be able to desire to ask approximately that. in any different case, you are going to be out by employing the date of the first public sale. as quickly because of the fact the first public sale is over (or as quickly because of the fact the hot deed is filed, that could desire to be the comparable day or the subsequent), the living house could have a sparkling proprietor who would be entitled to on the spot possession. for extra advice, seek for advice from a legal expert. wish that helps.
2016-10-10 09:10:12 · answer #8 · answered by ? 4 · 0⤊ 0⤋
Kimi D is right
I'm guessing you got foreclosed on. Say the mortgage payoff is $100k. You are liable for that amount right now.
If the house sells at auction for $90k, you are still liable for the remaining $10k regardless of who buys it.
2007-08-16 09:39:22 · answer #9 · answered by Mark B 5 · 0⤊ 0⤋
The loan will be paid off first. Then what isnt paid on the loan will go to you on a Tax form 1099 as income to you.
2007-08-16 09:45:51 · answer #10 · answered by hirebookkeeper 6 · 0⤊ 0⤋