Hi everyone!Im hoping someone can help. I bought this house in Maryland.It was at a foreclosure auction.I wanted to contact the person that was living there to see what his intentions where.I wanted to get into the house to start the rehab loan.Know one was there so I left a letter saying you have till the end of the weekend to contact me or Monday im going to the court house to file papers.He called and said that the auction should have been canceled.He was refinancing the house got all the paper work done even the appraisel,everything.I called the place where he was getting the loan and they said the same thing.The only thing they needed was the payoff.The other bank wouldnt get back with them for the payoff and just went ahead with the auction.Is there something wrong with this?Now I dont know if im getting the house.All I know is my deposit is with the auction/attorney.Can someone please help???Thanks,Michele
Answer should be pretty obvious… Do you have the deed for the property from the auction? If not, let the mortgagee to hammer it out with current owner.
Shamatso,Thanks for the reply!No I don’t have the deed.I guess I just go on and do my thing and assume Im getting the house,get the appraisal,loan ect. Is there a way this person can get his house back? Thanks,Michele
Michele,
Why are you avoiding the issue? You should not just go on do my things and assume as you say! Time is money! You get ahold of the mortgagee and get the deed! No excuse!
Unless you have a recendant (spelling) period where mortgagee can change their mind? Every state is different BUT you should be asking the question to mortgagee or their attorney who was at the auction and awarded you the property.
Shamatso, I was waiting for Monday morning to ask them the questions but thought id post this over the weekend to see if this has happened to anyone and if the auction could be reversed or what.I just got off the phone with them and they said he had plenty of time to pay up. The house is mine.Unless he wants to pay me for the house he has to get out.Everyone has a story!!!Thanks for all the info.Michele
Every state is different. In Ohio, where I live, the owner has a redemption period. He can pay in full, and get the property back prior to confirmation. That may be his plan.
Don’t invest anymore into this untill you know what owner is going to do.
Jan
I agree.
What would be considered as “full” price? Amount owed before the Foreclosure? What the property sold at the auction? Fair market or appraised value?
I believe the owner can pay what was owed to redeem the property
Ohio does not have a redemption period per: http://www.realtytrac.com/foreclosure_laws.asp?strState=Ohio
Hey there blueboxer;
Pertaining to Ohio foreclosure and redemption rules:
Per the info printed in the RealtyTrac comments, the following is extracted:
"[i]After the sale, the court reviews and files an order confirming the sheriff’s sale. The sheriff prepares and issues a deed transferring ownership to the winning bidder.
The borrower has a right to redeem the property at any time before the sale is confirmed by paying the balance owed and court costs[/i]."
The time period between the sale (auction date and time of gavel knock) and the sheriff issuing the deed to the highest bidder is the redemption period. The time for the borrower’s (owner) right to “redeem” is the same as the “redemption” period. This time can be short (2 to 3 weeks) or a few months long, depending on the length of time of the winning bidder’s transfer of the full amount owed to the sheriff. The key words are “before the sale is confirmed”. The sheriff’s office paper work confirms the sale. The legal info may be found in Ohio Revised Code 2329.33.
I would suggest to “michele66” to call or go to the auction office site and ask questions. What are the procedures a winning bidder goes through to obtain the deed? Is there any redemption period? Once you pay and have the deed in your name, the property belongs to you. If there are problems past this level, you probably need to contact a lawyer, as there are problems at the court auction system level. Is the property worth the problems? What are the court procedures for evicting a “stay behind” property owner?
Question, where there two (2) lender mortgages involved in this foreclosure? If so, then maybe the owner (borrower) was working with the wrong lender, not the foreclosing lender.
Hang in there, Due Diligence to you. Longshot
Thanks to all the responses!It really helps.I checked into the redemption period in Maryland.There is no established redemption period for the borrower,but the courts can set a redemption period on a case by case basis.There is only one bank this guy had to deal with.The way I take it is they dont have to notify you about the foreclosure untill 10 days before the auction.The bank takes this to court and they set up a payment plane if you dont pay up then it goes to auction.They have to post the auction date three times in the newspaper before the auction.I cant see how you wouldnt know your house is going to be taken from you if you dont make payments.This guy was trying to refiance his house 10 days before the auction.He said they sent the payoff to a title company.He didnt tell them to do that so they never got the payoff.Why would you leave it up to other people to make sure your house didnt get auctioned off.He wasnt even there at the auction.I just dont get this guy.Thanks,Michele
They check title when you refinance and your credit …at least in my state of Texas. I can’t belive that new bank would approve refi with cloude in title. They are required to call the existing lien holder for payoff balance and tell them that payoff is in their way…this is all done by some times good folks at title company…
DFW
Thanks DFW!You would think thats why they sent all the info to the title company.I dont know something just doesnt seem right.I cant blame the guy for trying to save his house but you would think he would have done all that when he stoped making the payments.Instead of waiting till the last couple of days before it was going to be auctioned off.Wouldnt it be nice if we could live in our homes and not make the payments on it and still get to live there!!!Yea,Come on.You dont pay they take!!!Thanks,Michele
During the week this guy told me he would let me and my appraiser in the house to do our thing.Today the appraiser calls to set up a time.I even get the appraiser to do it on Saturday so this guy doesnt have to take off work.I call the guy to set it up with him and now he doesnt know if he is going to let me or anyone else in the house.He says his attorney said he doesnt have to let anyone in.Now i have to wait to hear from him to see what he is going to do.I thought I would save some time and money by just being nice and now im right back where I started.If he doesnt let us in Saturday on Monday im going to the court house.I should have just done that from the start.If I have to go to the court Monday ill set up the appraisal for during the week so he can take off work and miss the pay.Thanks,Michele
michelle,
I was curious what you found out from the mortgagee and the attorney?
did you find out the process to receive the deed? Curious as I live in DC area as well.
thanks
Hurrikane,I have talked with them and they say he doesnt have a case.My part is to get the loan so at settlement the house is mine.The owner wouldn’t let me or the appraiser in this past weekend so now my part is to go to the court house tomorrow so i can get the appraiser in the house.Ill have to wait to find out if his attorney files papers what happens next.I also have to find out when I do go to settlement and the guy is still in there how long that will take to get him out.I hope its the day after my settlement!I think I should have bought an estate auction sale.Then I wouldn’t have had to deal with these kind of people.But Im always up for a challenge!!!Michele
sounds like you have your ‘fun’ cut out for you.
good luck
Well I went to the court house today!I can’t find the answers I’m looking for.I went to three different buildings to try to find out what the procedure is in a foreclosure auction and what to file so the appraiser and I can get into this house.Now I’m waiting for my attorney to call so I can see if he knows what should be done.I’m not the first person to buy a foreclosure at auction.I dont know why this is so hard.Maybe the people that buy foreclosures buy with cash or just get a loan and use there money to fix the house up.If there is anyone out there that knows about Maryland Law I could use the help.Thanks again,Michele
it all depends on the state you’re in. in NY, for example, there’s no redemption period because it takes more than a year for a property to get to the court house steps. and the owner has plenty of time to get rid of the property.