Will the foreclosure process be pushed back while her house is being bought? Or does she have to leave by the foreclosure date?

by oliver on September 30, 2010

Question:

Will the foreclosure process be pushed back while her house is being bought? Or does she have to leave by the foreclosure date?

My aunt’s house is being foreclosed. However, she found a buyer for her house.

Answer:

The best thing to do would be to close the deal with the new buyer before the date of foreclosure or sheriff’s sale. This will help you stop or prevent the foreclosure process from being pushed through. However, if closing the deal before the scheduled date is not possible, your aunt should contact the bank as soon as she can. The bank will probably ask for the sales contract in order to make sure that the house is really being purchased by someone. In addition to this, the bank will also request for the buyer’s information to determine whether or not he or she can close the deal or can get a mortgage if he or she is not paying on a cash basis. During this time, the bank would most likely work with the borrower who is in default, assuming that the borrower will be most cooperative until the situation is resolved.

Your aunt does not necessarily need to leave on the date of foreclosure. The time frame of a foreclosure process varies in every state. To know more about the schedule in your state, you can contact a real estate attorney. She should also ask whether or not redemption rights is practiced in her state. If this is allowed, your aunt still has the chance to reacquire her home after the sale by paying all of the outstanding balance, loan fees and interest.

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