what happens to a home if the foreclosure is cancelled?
Submitted by George
from CA
- 05/07/2010 - 7:02pm
when a foreclosure is "cancelled", what happens to the home? is the entire foreclosure process stopped for good on this home or is it just postponed?
and, why has there been such a high number of cancellations in recent months? are the banks giving up? i doubt that all of these home owners have all of a sudden paid their past due amount.
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There are a number of reasons foreclosure sales are cancelled:
Filing errors - trustees regularly make mistakes when filing trustee sales, and therefore have to cancel them and refile the notice of trustee sale.
Loan mods - while foreclosure continues during trial loan mods, those that convert to permanent have the foreclosure sale cancelled.
Short sale - some properties are sold before the foreclosure sale, typically for less than the amount owed in the current market, thus canceling the sale.
Refinance - pretty rare right now.
Delayed too long - CA law allows foreclosure sales to be postponed for a maximum of one year. After that the sale has to be cancelled, and the notice of trustee sale refinanced.
The bank says the sale is active again after a cancellation, but it still shows up with the past sale date, the wrong spot on the map, a terrible photo, and saying that the sale is canceled. (Before they had the wrong legal, too.) I understand that the reason for doing this could be the terrible market with NO bidders. Problem: the expense for an impoverished owner keeping some rented space in order to be prepared, plus the continuing expense of keeping the old home up, and the general uncertainty - while the bank waits for prices to rise and piling on the fees on top of fees so that redemption becomes ever more impossible. There appears to be no choice or say for the owner and no need to notify, so the bank just does what it jolly well pleases.. Is there any way through this?
Couple of things:
1. We recommend owners NEVER move out until they are contacted by the bank after the foreclosure. I understand the desire to be prepared, but right now this process is taking years, so why pay rent? Especially when the bank will likely give the owner some time to move and some cash in exchange for leaving the home clean when they do. Also the owner remains liable for the property until its out of their name, better to be there and know what is going on.
2. We won't show the property as active again until the lender files a new Notice of Trustee Sale. If we aren't showing it, this is likely why. Also note that we don't take photos of properties.
Finally, it seems there is no way to force the lender to foreclose, despite the fact that is what these owners want. As such, best to just prepare them for the reality that it may take quite a while. For my take as to why this is occurring read: Foreclosure Roulette - a game of extend and pretend
i am not ready
This process starts all over in this case. Is that correct? At least 4 months or so before a new auction is commenced.
No. Typically only a new Notice of Trustee Sale is required, so it can take as little as 21 days.
This has been postponed a few times. This was a cancellation this last time. Any difference?
A postponement does not require a new Notice of Trustee Sale, a cancellation does. But the fact that it postponed doesn't change the timing of taking it back to sale.
The trustee no longer has a sale date on this. Would that mean the entire process restarts? They did say they are waiting on P/W from the lender.
No. I'm not aware of ANY instance that would require a new NOD other than a change in the law since the last time they filed the NOD that now required a different form of notice. You can pretty much count on just a new NTS.
Thanks so much for your help. Will keep my eyes peeled for the notice. Will I get something from them again about a sale date?
By law they have to post the notice on your door, publish it in the paper and record it at the county. Note, however, that your simply not seeing the notice on your door is likely not enough to overturn an otherwise valid sale (though failure to record or publish would be).
I do check Priorityposting every couple days also. Can I check with the County Recorder or County Trustee to keep up on things.
Could this be a law change you were talking about? www.unitedtrustees.com/enews/663.php
No. Cities and counties have no say in notice requirements, its a state matter.
i am renting this house in foreclose, landlord taking me tyo court,i send the home retention department a copy of my court order.will this cancal the landlord postponement?
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