It’s a shame, but it is documented that more and more homes are ending up at auctions whether the homeowners like it or not. auctions happen after a homeowner has defaulted on their loan and the bank has completed the process. The time frame from first payment default to the auction varies from state to state. For example, Pennsylvania has one of the longest processing periods as a clean and typical 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 process begins does not mean that you are at the end of the road. Through the entire process leading up to the auctions, a homeowner is able to save their home by bringing their account up to date. However, by this point legal fees have been included and those can be anywhere from several hundred dollars to several thousand. Even so, some companies are able and willing to set a repayment plan in order to avoid taking homes to auctions.
The End is Not Always the End
While this does not apply to every state, there are some states that allow the homeowners to get their homes back even after it went through some auctions, including properties that were sold to third parties at those auctions. The period after the auction sale is what is called a rescission period. A rescission period is a pre-determined 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. For those who were able to get a refinance but the new loan was delayed just a few days or a few weeks after the auctions, this is perfect. There have even 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 states give up to a year. Check with your state or research rescission periods on the internet to see if your state allows the extra time after the auction has been held.
