Which Party has Authorization to delay a pre-foreclosure auction date?

Question

I'm getting conflicting answers. Who do I contact to get an auction date extension, the trustee or the lender? Thank You.

Account Closed · Answer

The lender is the one with power to extend. If a payoff or reinstatement is eminent the lender might agree to an extension. It's unusual for a lender to want to foreclose. All they really want is to get the loan reperforming or a payoff.

If it were me I'd call the lender, borrower and trustee to see if they would talk with the lender. The trustee is easiest to get hold of and the one with the best understanding of the situation dynamics.

You need a good reason to extend or the lender will see it as another BS delay tactic.

Minna Reid · Answer

In the two judicial states that I work, the lender will move the foreclosure date if they deem it of benefit to themselves, or sometimes I've had luck with the borrower appearing in front of the judge and pleading for it.

Scott E. · Answer

A lender isn't going to offer you an extension on the foreclosure date unless you give them a reason to. The 3 most common reasons you could get the sale date pushed out or removed all together is:

1. Reinstate the loan (requires paying all past due payments, late fees, penalties, and foreclosure fees).

2. If the borrower is in the process of a short sale with a real offer pending

3. If the borrower is in the process of a deed in lieu

As others have stated, the foreclosure process itself does vary a bit by state. But starting off with the lender is generally going to be a good plan.

John Slater · Answer

If you are in a non-judicial foreclosure state, then most of the time the lender will be the one the borrower contacts to beg and plead for an extension. Whether they get it depends on a number of circumstance and the reasons.

That said, there are many services who will instruct the borrower to communicate everything with the foreclosure trustee, that wasn't the case 3-4 years ago but it's starting to happen more and more. If the borrower has to communicate with the foreclosure trustee, ultimately the foreclosure trustee will get the final answer from the lender, they are the ones pulling the strings, and yeah its crazy to force borrowers then to the foreclosure trustee, but it is what it is... so in answer, sometimes the lender, sometimes the foreclosure trustee.

Bill J Fay · Answer

It is state dependent. There are Judicial and non-judicial states, as well as states that allow both. Judicial means the foreclosure is processed through the court systems with a Judge. Since it's a tad more complex, it is easier to get a delay. Non-judicial means the lender can foreclose, which is an easier process but harder to delay. Do you have a RE lawyer? They will be able to help in either case.

Chris Seveney · Answer

@Joseph Hernandez

Chances of getting a lender to push a foreclosure date are very rare. First off, they will not communicate with you since you are not the borrower

Most lenders also have paid for the foreclosure legal costs so pushing it is typically not in their best interests

As a lender who owns loans that go to foreclosure, we have never pushed one out unless significant funds were provided ($10k+)

Good luck

Joseph Hernandez · Answer

Thank you sir.

Bob S. · Answer

YOU are not telling the bank anything, they make the rules.

Joseph Hernandez · Answer

Thanks Mike. Your answer makes sense. That's why I was getting what appeared to be conflicting answers. Not all lenders have the sale rules. From your experience, which agency makes the decision most often, the lender or the trustee?

Which Party has Authorization to delay a pre-foreclosure auction date?

Which Party has Authorization to delay a pre-foreclosure auction date?

Most Popular Reply

12 Replies