At the end of the foreclosure process, once all the notices have been sent and published and the lawsuit is finalized, a public auction is held to dispose of the property. This is generally called a sheriff’s sale or trust sale and is the event during foreclosure in which the interest of the borrowers is transferred to the buyer at auction. But sheriff’s sales don’t always go smoothly, and homeowners may need to find out whether or not their home sold.
For example, if the lender canceled the scheduled sale for any reason, homeowners may believe that their property was sold under them when, in fact, they still own it. Banks cancel auctions for a number of reasons, from missing an inspection, waiting for an appraisal or a response through a request for more time from the borrowers themselves.
Another factor that can cause a sheriff’s sale to be scheduled but not confirmed is that if a third party bids on the home, they win the auction, but cannot afford the purchase price. If this is the case, the property may need to be auctioned again, in the hope of finding a more willing and capable buyer. However, if this happens, the owners may not even know that the first auction did not count, as they assume that the house was sold and paid for.
So after a sheriff’s sale, it’s important for homeowners to make sure the county actually sold their home and properly confirmed it. If the property did not sell, borrowers can continue to live in their home until a valid auction takes place. This can take an additional two to three months to schedule, perform, and confirm, and owners can use all of this time to save more money.
There are several ways to find out if a property has been sold or if an auction has been confirmed. Possibly the easiest way is for owners to call the county recorder’s office or the clerk’s office and ask them to provide the information on who the current owner of the property is, as well as any links on the property at this time. . If the bank bought it, there are most likely no links, but if a third party obtained a loan to buy it, there may be a new mortgage affecting the deed.
This would be the easiest way to determine the status of the sheriff’s sale, as the county in which the property is located maintains all records affecting the property. If the foreclosure took place but there was a problem with the sale, they will be able to give that information to the owners, while the court can inform them if a new auction has already been scheduled.
But if no documents have been posted proving a transfer of ownership, the home may need to be auctioned again at a later date. Especially if a few months have passed after the scheduled auction and no documents have been produced proving a transfer of title, it may indicate that the sheriff’s sale was invalid. This can be due to any of the reasons mentioned above, but especially if the highest bidder was unable to pay, the house may be auctioned again.
Meanwhile, the original owners could still have possession and legal ownership rights to the property, just as they did during the foreclosure process. According to many state foreclosure laws, it is the confirmation of the sale that ultimately transfers the property to the highest bidder at auction; If that has not been done in a particular case, the borrowers can still own the property for now.