Once a property is headed toward an auction sale, many homeowners assume a sale is inevitable. This is not true. You have legal rights throughout any legal action involving your mortgage, including a foreclosure sale.
Auction Sale Basics
After you have fallen behind on payments, the mortgage holder will file a Summons and Complaint with the court, asking that your house be sold at auction and the proceeds used to pay off the mortgage debt. Before the auction occurs, the homeowner has significant rights regarding paying off past due amounts, working with the lender to obtain a loan modification, and contesting the right of the mortgage holder to initiate proceedings to obtain an involuntary sale.
Only once the court has entered a judgment finding for the plaintiff (the mortgage lender) will the lender initiate action to sell the house at auction. At the auction, any interested party can purchase the home, including yourself. If the house is not sold, the bank may take title and will look to sell through a broker.
Potential Legal Options
At Rubin & Licatesi, P.C., we have been protecting the rights of homeowners and businesses for over 30 years who are facing the loss of their property. We can examine your legal options at any point in the process, including prior to and after the auction sale.
For example, we may be able to vacate (erase) a default judgment against you if you had a reason for not responding to the Summons and Complaint. We can also protect your rights as a tenant if your house has been sold at auction to the bank or a third party, meaning you can still live in the home if you make rent payments.
We have helped thousands of homeowners in foreclosure proceedings. We can help you explore alternatives to auction sales, including loan modifications and forbearance.
Call To Schedule Your Free Initial Consultation
Do not give up when your home is facing a foreclosure sale. Contact Rubin & Licatesi, P.C., to discuss your legal options. You can reach our lawyers by calling 516-712-2969 or online here. We have office locations in Brooklyn and Garden City, and we represent clients throughout New York City and Nassau County.