what happens to a home if the foreclosure is cancelled?
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.
Posted by George
from CA
17 Answers
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1
i am not ready
Answered by annjagessar@hotmail.com
Mon Apr 11th 2011 at 6:46pm
0
NOD in Oct. then NO NTS in Feb. If NTS doesn't happen, what is happening? Is an MOD even possible after 12 months delinquincy and approaching $100K in arrears on $650K original loan? Why would it take 12 months to dream up a loan mod on a home that will bring a profit if sold right now?
Answered by Ernie
Fri Mar 30th 2012 at 9:25pm
Hi Ernie,
We are in unprecedented times in terms of the delays in the foreclosure process. The Notice of Trustee Sale can be filed at any time after the 90 days default period but there could be a delay of several months. There is no way of knowing if you lender is moving fast or slow. We do typically see smaller local banks and credit unions moving faster than the larger national banks.
It is not unreasonable to have a pending loan modification. The laws and various modification programs are changing all the time. You would of course need to have contacted your lender about a modification. If you have not communicated with your lender it would probably be in your best interest to see what type of programs are available to you if you want to keep the house. If you are just waiting for the bank to foreclose it could take much longer than expected.
Michelle
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Our home went thru foreclosure, we filed bankruptcy, we received a 1099 form and also had a personal judgement filed against us. Then one day the bank up and vacated the foreclosure and the judgement. They said they did not file it properly and we could move back in the house and we could apply for loan assistance. We have moved back in but what about the 1099 form and the fact that we had to file bankruptcy because of the foreclosure?
Answered by crystal wall
Mon Feb 13th 2012 at 7:17pm
HI Crystal,
The 1099 was issued so you do not want to simply ignore it. I would make sure you explain this to your CPA/tax preparer. You will definitely want to address it but clearly the 1099 would be voided also if the sale was rescinded. We hope you will come back and tell us what your CPA said and how they addressed this on your taxes. Michelle
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This process starts all over in this case. Is that correct? At least 4 months or so before a new auction is commenced.
Answered by Clarence in Riverside
Wed Jun 22nd 2011 at 1:58pm
No. Typically only a new Notice of Trustee Sale is required, so it can take as little as 21 days. Sean
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This has been postponed a few times. This was a cancellation this last time. Any difference?
Answered by Clarence in Riverside
Wed Jun 22nd 2011 at 2:05pm
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. Sean
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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.
Answered by Clarence in Riverside
Wed Jun 22nd 2011 at 2:10pm
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. Sean
0
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?
Answered by Clarence in Riverside
Wed Jun 22nd 2011 at 2:21pm
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). Sean
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I do check Priorityposting every couple days also. Can I check with the County Recorder or County Trustee to keep up on things.
Answered by Clarence in Riverside
Wed Jun 22nd 2011 at 2:33pm
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Could this be a law change you were talking about? www.unitedtrustees.com/enews/663.php
Answered by Clarence in Riverside
Wed Jun 22nd 2011 at 2:42pm
No. Cities and counties have no say in notice requirements, its a state matter. Sean
0
We received notice of the foreclosure along with legal papers stating to be off the property by a specified date & time. We did so, only to discover the forclosure was cancelled. I was told there is a federal law that requires a bank to inform you if the foreclosure is cancelled. Is this true and if so, do you know where I can locate the law itself?
Answered by JB
Sat Feb 18th 2012 at 9:52pm
I've never heard of any such federal law, and seriously doubt that one exists.
Separately I'm really surprised that the foreclosure notice would include a demand to vacate... typically the eviction process doesn't start until after the foreclosure. What state are you in? Sean
0
I live in Arizona. We stopped making house payments in May 2010. We were notified of trustee sale May 2012. Sale date was set for 8/3/2012. However, the night before my husband called to check opening bid. He was told the sale was cancelled. We did not exactly know what this means so we just did nothing. My husband called the bank and they said it was canceled and we were still responsible for the home. I called the trustee back a little latter and was told the file was closed and the sale cancelled and was furthermore told the sale cancellation paperwork was in route to my county offices. Since they did not postpone, but cancelled. Will they have to start over with the Arizona 91 day notice of trustee sale rules?
Answered by Cami
Thu Aug 16th 2012 at 2:51pm
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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?
Answered by Susan Baker
Mon Aug 23rd 2010 at 2:15pm
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 Sean
0
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?
Answered by duane
Wed Dec 14th 2011 at 8:44pm
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Hi, i have had a foreclosure for about a year till November 10th of 2012 and finally it got canceled because i filed BK for chapter 13, but i didn't get approved. Now trustee filed motion to dismiss my case on December 4th of 2012 for a 180 days. My question is, when my mortgage company will or can refile foreclosure again, and if I will have enough time till i can refile for BK later again?
Please, somebody, let me know some info ASAP course i don't have enough time.
Thanks
Answered by aleksey
Thu Nov 29th 2012 at 12:05am
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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.
Answered by Sean
Mon May 10th 2010 at 8:06am
is this a new law and under what Forclosure Law Civil Code Gerri
-1
my ex caused our house to go into trustee sale. I managed to stop the sale by hiring Federal Housing Bureau. My ex then failed to pay the second. All loans are only under his name, but I am a trustee of our living trust and own 1/2 the equity ( we gave $850K for down payment). I paid the property mortgage for 5 years and then left him because of domestic violence. He failed to inform me the second foreclosed after he withdrew 1/2 a million dollars and stopped making payments. I found our the HELOC sold the note when I noticed my agent was no longer listing the house. As the second sold, my ex claims he moved out because he was evicted. I contacted the First since they had no idea this had taken place. Just checked and the first Trustee Sale has been completely cancelled. What should I do? The house is valued at $1.7 million. The buyer of the second only paid $340K of the $500K HELOC. I want to regain possession of the house to sell it and at least recuperate some of the money I paid for the down payment ($300K of the $850K came from my daughters' education fund ). I would appreciate any advice... :(
Answered by marilu
Thu May 3rd 2012 at 7:27pm
Hi Marilu,
I think you need to consult with an attorney. Michelle
