Stopping a Foreclosure Auction

[Jacobo B.]

Hello everybody!

I need help!!! I'm about to sign a contract to purchase a property with a owner facing foreclosure and the auction is in 7 days. How do I stop the auction to get enough time to close on it? 

Any advice will be greatly appreciated.

[Bob Okenwa]

@Jacobo B.

I'm assuming the property is in Miami, but the website for the clerk of the court has information on what it would take for a property owner to redeem his/her property prior to or immediately following an auction. I'd call the court or search the auction site and get the case number and get in touch with the appropriate parties to find out exactly how much is due and how you can go about staving off the foreclosure. You may need to get a lawyer if you're not well-versed in foreclosure proceedings so you can ensure you follow the proper steps.

Property Redemption

To redeem your property, you must pay the full amount of the Final Judgment (plus interest, fees and costs) to the Clerk of the Courts. Payment must be made in the form of cash, or cashiers’ check, made payable to the Clerk of the Courts. You should contact the Clerk of the Courts Foreclosure Unit (see contact information on the front of this brochure) for a redemption certificate which will give you the correct amount you must pay to redeem your property.

After you have redeemed your property, you will receive a “Clerk’s Certificate of Satisfaction of Final Judgment of Foreclosure” which will be recorded in the Public Records at the County Recorder’s Office – 22 NW 1st Street, Miami, Florida, 33128, phone # (305) 275-1155. A fee is required to record this document.

[Patricia Steiner]

You can't...but the homeowner can:  "Negotiating a loan modification or payment plan to pay your defaults, requesting a deed-in-lieu, making a short sale, suing your lender, or filing for bankruptcy are some of the options available." (End).  And, you need to KNOW that even if you were to purchase the property at the auction, it doesn't guarantee you clear title to the property: https://www.primerus.com/busin... 

Your best bet - and I'm not sure it will be the right play - would be to attempt to reach a sale agreement with the homeowner that would be acceptable to the lender.  Odds of that happening are slim to none as they say.  Take the time to know more before thinking there's a deal to be had.  Again, you can't stop the auction...

[Joe Homs]

@Jacobo B. I just closed on a deal like this in California. Have the seller call the bank and tell them they have sn offer and would like a 30-day postponement. The bank does not want the property back. They complied, and we closed 25 days later. Reach out to

@violet rose

[Eliott Elias]

You have to pay the reinstatement off, that number changes daily. 

[Chris Seveney]

@Jacobo B.

They will need to pay the past due and reinstate the loan. Lender may postpone if they have a contract in place with you and you have proof of funds and a large security deposit

[Dwayne Byrd]

We literally closed on one last year the day before it was to be auctioned off. We went to a title company which was ran by a lawyer. We had to get paperwork together quickly and he stayed in touch with the lender to keep them updated. We pulled it off with cash very quickly. It can be done, would definitely use a title company that has an attorney as compared to a normal sale I always use a normal title company.

[Rob Jacobs]

If this is the actual foreclosure sale, you have 3 options unless you can pay cash and close before the sale date. 

1.) Ask the seller to call the bank and ask them to stop that sale in lieu of a short sale or, loan modification. This is very unlikely due to timeline. 

2.) If they were affected by Covid, he seller can apply for HAF, then call the lender, give them  the HAF application number and again ask them to stop the sale. Still unlikely that they'll postpone the sale.

3.) Here's your best option. The seller would need to contact a bankruptcy atorney and file prior to the sale date. That will stop all foreclosure activity immediately. Then they can look into their options to save the house, sell the house and other options that may be available to them. This is by far the best chance at getting the sale postponed.

If this court date is for the judgement, you may still have enough time prior to the actual foreclosure but, you would need to pay the amount owed per the judgement in order to clear escrow. Good luck!

[Gina Stern]

Yes, you would need to file a motion in court to stop the foreclosure, find a good Real Estate Attorney here in Florida I have several, message me directly if you need a great recommendation.