|
Q.Can I still do a short sale if my home has already been auctioned off?
A.In some states there is a period after the foreclosure during which the homeowner can redeem the property. This is known as the "right of redemption." The statutory period for redemption varies by state.
In California, if a house is sold by judicial foreclosure the original homeowner will have a 3 month redemption period if the sale proceeds were enough to pay off the secured debt, and a 12 month redemption period if the sale proceeds were deficient. The statutory 3 or 12 month period for redemption can also be extended if the homeowner can prove the foreclosure was the result of mistake or fraud. To redeem the property within the statutory period, the homeowner must pay the "redemption price" (typically the price paid by the purchaser at auction plus any taxes or assessments that are due, along with costs and interest).
Don't get your hopes up, judicial foreclosures are very uncommon in California. Judicial foreclosures tend only to occur if the lender is seeking a deficiency judgment which is unavailable on a deed of trust for a residential property with one to four units lived in by the homeowner as a primary residence.
|
