My neighbor’s home went up for auction on July 23, but it’s now REO since there were no bidders. He told me that about 30 minutes before the auction, he was able to find the funds needed to reinstate his loan. His lender (Washington Mutual), asked for a fax copy of the cashier’s check before they were willing to cancel the auction. He told Washington Mutual that it would take him less than an hour to do that, but there was no way he could do it in less than 30 minutes; Washington Mutual did not budge. I did a search and read on several sites that in California, a homeowner has the right to postpone a sale by one day. By refusing my neighbor’s request for an hour, did Washington Mutual violate his rights?
I’ve never heard of a borower having the right to delay a sale. The trustee can postpone the sale up to three times without published notice and announce a new sale at the same location.
Generally, the borrower can stop a sale by bringing current all obligations within five business days of the sale date.
The borrower does not have the right to postpone for 1 day. The borrower can stop the sale by bringing the loan current UP UNTIL 5 days prior to trustee’s sale. After that the trustee/beneficiary can demand full payoff.