 Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 814
Location: OHIO
195.97 Dollars($)
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 Posted: Tue Sep 27, 2005 2:34 am Post subject: Can foreclosure be cancelled? |
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Lenders are likely to call for a foreclosure when you fail to make monthly payments on a mortgage held by the bank. But you can avoid such a situation if you can repay the late payments within the actual date of foreclosure sale. In such cases, the bank accepts the payments and reinstates your mortgage loan. The lender in turn has to stop the foreclosure sale.
There have been cases when the bank have not withdrawn the foreclosure. You are then free to sue the bank and the foreclosure sale buyer. The court will declare the foreclosure sale as invalid since you have already made the required payments. The deed forwarded to the foreclosure sale buyer is likely to be cancelled and the bank will have to refund the money paid by the buyer.
Case study
Michael and Ruth Selesia delayed the payments on a home mortgage of $15,000 held by the Bank of America. They were able to make the late payments just 4 days before the scheduled date of foreclosure. The bank of America reinstated their mortgage but the lender did not cancel the foreclosure even though there were a few days left for the sale. The foreclosure was conducted and Alan Boyajian on behalf of the La Jolla Group II partnership submitted the bid of $115,000, which was estimated to be the fair market value of the property. But five days later, the bank informed the La Jolla Group stating that the foreclosure was a mistake because the borrowers have already made the payments.
In the meantime, the La Jolla Group filed an eviction so that Michael and Ruth could be removed from their house. The borrowers in turn sued the bank and the La Jolla Group and the court issued a judgment against the bank and the buyer. The California Court of Appeal declared the foreclosure sale as invalid and asked the bank of America to refund the amount paid by La Jolla Group towards the purchase of the property. Thus, the judgment went in favor of Michael and Ruth and the deed offered to the buyer was cancelled.
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