4 Ways You Can Stop a Sheriff Sale From Happening
In a foreclosure, the sheriff’s auction is one of the last levels. If there is an upcoming sheriff’s sale, it implies that the bank has documented a foreclosure case against you. Also, it assisted you and received a decision from the judiciary to auction that property. In that situation, many owners want to halt the sale in order to protect their property. So, do you want to know if there are any possible ways to stop this sheriff’s auction?
Introduction To Sheriff Sale
In general, the sheriff’s sale is a public sell-off of the property via court order, which is naturally recouped by a contract lender after the foreclosure. However, it can be confiscated to fulfill verdicts or tax claims.
This sheriff’s sale permits the bank to auction your possession for cash, which it will use to pay your loan.
However, if the sale cost is not sufficient to repay your loan, you will be bound to a “deficiency.” But, if your property is sold at a much higher price and some amount still remains after recovering the loan, you will get a check to obtain the surplus money.
The sheriff’s sale will not happen unless the lender files a foreclosure case. If you want to protest the foreclosure objection, your lawsuit will continue to a hearing session. Keep in mind that the trial is not needed or essential in all cases. It is because several people would not revolt or reply to the foreclosure objection, and it comes in favor of the lender. When the auction is over, you will not have any right or ownership of the property. Besides that, you will also get a notice informing the date by which you will have to vacate that specific property.
As the real owner of that estate, it is possible for you to do something before the auction to prevent it and preserve your property. The following detailed by scura.com goes over what you can do to stop a sheriff sale from happening.
4 Methods You Can Use To Stop A Sheriff Sale
Here are some of the best and effective methods that are practical in stopping a sheriff’s sale from happening again.
1. Filing Bankruptcy
Filing bankruptcy is one guaranteed method to halt the sheriff’s sale in many locations. You have to file it on time in order to fix the contract liabilities. Contacting a lawyer immediately for a voluntary stay prior to the beginning of the auction can deter this sale. The automatic or voluntary stay is a referendum, and it stops creditors and money lenders from proceeding with the collection of the debt.
However, if the auction event is already initiated, the bankruptcy filing might be relatively late. Besides that, the moneylender has the opportunity to consult the court to knock off the automatic stay. After that, the lender can proceed with the sheriff’s sale. Remember that the sheriff’s sale is different from the foreclosure case. The bankruptcy will not qualify you for a loan revision as well.
2. Filing Relief Motion
One complicated method to stop the auction is to file a technical motion in court to reopen the lawsuit, which easily gives you another opportunity to protest the foreclosure. In other words, the Rule 60(B) motion is a petition to the foreclosing magistrate to keep aside the foreclosure decision and restart the case.
For this rule, it is essential to exhibit three conditions:
1. Express one of the reasons under the Rule
2. Demonstrate an excellent defense or lawsuit is available to you if the verdict is overturned
3. The motion for relief from the decision is immediate. You have to inscribe these three things if you want to win this motion.
3. Finish A Loss Mitigation Package
As of now, the federal law (RESPA) tends to halt the sheriff’s auction of the contract companies if you deliver a finalized loan revision package to them 37 days prior to the sale. They have to stop the sheriff’s sale until they send a reply to your plea. However, your application has to be finished or facially submitted for triggering this restriction.
In addition to that, it is better to be into the moneylender 45 days before the auction date under this code. But, several contract corporations are likely to dismiss it. You may feel relatively disheartened to lose your property without any chance. Due to that, the federal law will give compensation for damages and lawyer’s fees for those breaches.
4. Filing A Motion To Stay The Auction
If you provide a good enough reason, the magistrate might permit additional time to settle the foreclosure.
However, keep in mind that it is not compulsory, and the magistrate might not give consent to it. There are several procedural steps and legal conditions for filing this motion.
You have to file this motion at the earliest and need to inquire about a hearing date. Besides that, the hearing date must be prior to the auction date. If the court hearing date is planned, it is vital to send a Notice of Motion to the lawyers. You have to be ready to provide an extra copy of the motion to the opposing attorney on the same day. If the hearing date is near and sending a notice is quite difficult, then you can call for an “emergency” hearing for your case.
After thorough research, we have curated this list of the best ways you can use to stop the sheriff’s auction from happening. Keep in mind that the methods to halt this sale might be different from one location to another. But, the above-mentioned four methods will mostly help you stop the auction in various states.