questions & answers

Question: while working on a modification, my home of 17 yrs was sold at auction. Pls help me understand what my rights are. Note taped to my DOOR saying who the "new" owner is and I have to be "out in 3 days" please give me a direction, my son is disabled and lives w/me (25) I truly have no where to go and am in such an emotional wreck I cannot stand it. How can this be legal? How can a home be "sold" while they are "working on modification"? Pls assist me in whatever way you can. thank you.

Answer:

The following is provided for information purposes only and should not be construed as legal advice. Because foreclosure matters are frequently very complex, we highly recommend that you consult an attorney directly. There may be motions that can be filed that will stay or overturn the sale of your home: an attorney can help with these, while we cannot.

Low or no-cost legal help may be available to you: please see LegalLEARN immediately: foreclosure matters are extremely time-sensitive. Once a mortgagor defaults on their mortgage, under Arizona law the lender is legally allowed to initiate foreclosure proceedings, despite working with you on a modification. Working on a loan modification does not automatically stop a foreclosure; the two processes can be engaged in parallel with each other. Whether the sale was legal and you can be forced to vacate in 3 days depends largely upon whether the sale was done via judicial sale or whether it was done out-of-court. Generally homes in Arizona go through judicial foreclosure, meaning that the court oversees the process. If your home was sold through a court-overseen sale, you should have received notice of the sale of your house at auction. If you did not receive this notice, you may petition the court to overturn the sale due to insufficient or no notice. In addition, if the sale of your home was through judicial foreclosure, you should have a six month period following the sale to redeem your home (meaning to pay all costs associated with your mortgage). During this period of redemption, you cannot be forced to leave. However, if your home was sold through a non-judicial sale your options may be limited. Mortgage paperwork can sometimes contain a clause that allows the lender to pursue a non-judicial sale avenue. Notice of the sale is still required and you may be able to protest by claiming the lender violated your rights. As stated above, we recommend you consult an attorney immediately. Your options may be limited and are likely very time-sensitive.