Even after you lose your home at a foreclosure sale, you still have a couple ways you can get it back even after it has sold! And you have a few legal rights to be aware of as well.
Buy it Back
Your first option is to buy your house back from whoever bought it at auction. This is more likely to happen if it was your lender that bought the home back, but is possible even if it was someone else. You’ll probably need 3rd party financing (which may be difficult or impossible to get). Sometimes, your lender will refinance your purchase, though, so you should at least ask the question if you have the income to support the payments.
Right of Redemption
Some states also have a “statutory right of redemption” after a foreclosure sale. This is a period where you (as the previous homeowner) can repurchase the home by paying the total purchase price plus interest and any allowable costs to the person that bought your home at the sale Filing a bankruptcy can give you even more time to take advantage of your redemptions rights, but this varies from state to state. We recommend talking to a bankruptcy attorney if you have questions.
Military Service Has It’s Perks
Active duty military personnel have additional, specific rights regarding redemption periods and other foreclosure and credit-related issues. You should research the Soldiers and Sailors Civil Relief Act if you are or were in the military or called to active duty.
Under certain circumstances, a court can set aside the sale of your home. If your lender didn’t follow the correct procedures during the foreclosure process, including properly notifying you, you may be able to get the court to set the sale aside, which will make it so the sale never legally happened. If you think you may have a case like this, we recommend discussing your situation with a lawyer experienced in these matters. If you don’t know of a local lawyer like this, please check out the National Association of Consumer Advocates (http://www.naca.net).
Don’t Leave Your Equity Behind
Finally, if there was equity in your home after it was sold, you may be legally entitled to it. You should expect your lender to deduct appropriate fees for servicing your account and processing the closing of your loan, but go over every fee very carefully to make sure they make sense. Some lenders have been known to tack on fees simply to eat up all the equity so they don’t have to pay a homeowner what they’re owed. The process to obtain these funds varies from state to state. If you’re in this situation, we recommend talking to the clerk of the county court. Ask them what the process is. If they don’t know, contact your lender’s legal department or a local lawyer familiar with foreclosure law.