Let’s say there is 1 week till the auction.
If I have a sales contract with the owner and something comes up that delays the closing will it still be auctioned off?
What other ways can you delay an auction besides asking the lender to postpone it?
Thanks!
I believe the lender has to post pone it. I can’t imagine a way to post pone without the lender being involved. Maybe the seller declaring bankruptcy would do it, but that doesn’t help you out.
Standard disclaimer about this not being advice and to seek competent professional counsel.
I’ve heard that an owner could file chapter 13 bankruptcy and only file the minimum paperwork and not complete it. That might give them about 15 days more to close the sale. Technically the entire loan would still be due and the owners credit would take a relative hit for the initial bankruptcy even if it’s not completed. Careful about suggesting that action as some state law, including CA, don’t really like it when buyers go around telling or helping sellers to file bkp.
The other option is to ask the lender for a postponement. If you’re buying sub-to it lets the cat out of the bag but then again having the property go to auction kind of puts a kink in the deal to.
And of course, there’s the old bring the loan current but as a buyer that is too much risk, imo.
Thanks but I was not looking for questionable ways to do it.
I was just wondering if maybe I could talk to the person/lawyer in charge of the sale or the actual auctioneer. To let them know I was buying it and ask if the sale could be postponed for a couple weeks.
I am mainly marketing to owners that have around a month till the auction but I just wondered if I could postpone it any other way than talking to the lender. (Just incase someone waits till the last minute.)
Thanks
I don’t know about all states but in CA that’s illegal under the Civil Code. It’s the equivalent of bid or auction rigging. The auctioneer, in CA they’re a representative of the trustee who performs for the benefit of the beneficiary (i.e. lender), is paid by the lender and must do whatever the lender instructs them to do. So the only ways to stop a sale I’ve heard of is to get federal bkp court protection or the lender must instruct the trustee / auctioneer to postpone the sale. It’s not really a system that helps the owner but then again they are in foreclosure. Some states still have old laws, initially to protect farmers, and gives owners rights of redemption so if you’re in that kind of state then the sale really isn’t the end.
A note about bkp and auctions (skip if you’re not comfortable with these concepts). Many auctioneers give a call to the beneficiary right before the sale for confirmation to proceed. In some cases either party will check bkp filings right up to minutes before the sale takes place. The reason is that the bkp filing appears in the PACER system immediately upon filing which would give notice to the lender to postpone but many small or private lenders don’t do that step so if the bkp is filed and the sale takes place, it could take up to 30 days to have a hearing in bkp court, which is required, and have another auction. Plenty of time to close. Not that I’m suggesting that.