How to Recover Your Home from a Public Auction

The rules of your state will govern how and when you will be notified of a foreclosure of your property, and if it will be sold at public auction. A public auction typically only takes place if the foreclosure on your home was the result of a tax lien. This happens when taxes go unpaid on a property or by a homeowner for a long period of time and the IRS holds the home as collateral until the taxes are repaid. In this case, you will be notified of when the auction will take place and where it will occur.

There are three main strategies to recover your home from a public auction.

  • Come up with the cash to bid on the home. This is not a possibility for most recently foreclosed on homeowners, as lenders do not want to work with a homeowner in default.
  • Find a trustee or a manager to purchase the home and rent it back to you. In this case, you can remain in the home, but you will not own it.
  • File a legal motion if you believe your home was sold illegally at auction. You need to learn more about the laws in your state to move forward with this course of action.
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