All About Foreclosure Auctions
It is a shame but it seems that more and more homes are ending up at foreclosure auctions whether the homeowners like it or not. Foreclosure auctions happen after a homeowner has defaulted on their loan and the bank has completed the foreclosure process. The time frame from first payment default to the auction varies from state to state. For example, Pennsylvania is one of the longest states as a clean and typical foreclosure can take a little over a year in most cases while Texas takes about forty-five days on average.
So it really depends on where the home is located as to how long the homeowners have to save it. Just because the foreclosure process begins, does not mean that you are at the end of the road. Through the entire process leading up to the foreclosure auctions, a homeowner is able to save their home by bringing their account up to date. But by this point, legal fees are involved and those can be anywhere from several hundred dollars to several thousand. Also, some companies are able and willing to set a repayment plan in order to avoid taking homes to foreclosure auctions.
The End is Not Always the End
Now, while this does not apply to every state, there are states that allow the homeowners to get their homes back, even after it went through some foreclosure auctions. This includes properties that were sold to third parties at those auctions as this is what is called a rescission period. A rescission period is a predetermined amount of time that the original homeowner has after the date the property was sold to pay off the loan and regain ownership of their home as if nothing ever happened and they never lost their property and home.
In most cases, this does not happen because most people are not able to pay off the mortgage in order to save the home. But for those who were able to get a refinance but it was delayed just a few days or a few weeks after the foreclosure auctions, this is perfect. Also, there have been cases where people were inheriting money and it came just in time for the rescission period. Again, this time frame varies state to state with not every state giving this option to its residents. Some rescission periods can be for a few weeks, while some state give up to a year.
