How to get non-judicial foreclosure auction date postponed

Question

A homeowner in King County, Washington State just contacted me a few minutes ago about selling me his home which is in non-judicial foreclosure. The auction date is this Friday morning, Jan. 18th. That gives me three business days before the auction.

When a homeowner contacts you this close to the auction date, do you start by trying to get the auction date postponed? What are the best steps to get a postponement quickly? How long of a postponement is considered reasonable to ask for?

Tom Gimer · Answer

You’re not going to get a postponement by asking for it. You’ll need a legal basis to stop the sale... such as a bankruptcy petition.

Honestly though it’s better to just close with cash now and deliver good funds to the trustee before the sale.

Brett Goldsmith · Answer

Will be difficult to postpone something with this short of notice especially if she is not currently  under any sort of active review right now. If no review is poen likely only way to postpone is if she/property is elgible for anther BK automatic stay. Also if it was a standard sale, if you had a full pay offer, you might be able to get a postponement.

Jay Hinrichs · Answer

@Tom Gimer  now something finally in my wheelhouse.

no way to get this postponed unless they file BK

or there is a legit  listing by a real estate broker with a pending sale.   And even then sometimes they just sell it anyway.

in our state OR / WA this is a cash and carry business

now in practice U can send the amount to reinstate to the trustee they will call the bank the bank will say yes or NO in Oregon Wa they always did reinstate up until hours before the sale.

but then new laws came in  precluding most pre foreclosure sub too transactions. so I highly suggest the OP to research the applicable laws.. they have some real teeth . like in a felony.

So this one would need to be  CASH to pay loan in full.. and seller owner vacates .. no lease back any of that our states made foreclosure rescue lease backs strictly illegal

Tom Gimer · Answer

@Greg Lovern This isn’t a reinstatement. It’s a payoff.

Sam Shueh · Answer

Washington State is non-judicial state. Bank can foreclose borrowers homes.

Only the lender has the power to stop auction through default service company, a 3rd party who will service the auction.  Assuming you have cash and ready to pay all the debt, the owner can get bank to stop it. Time is of essence.

Greg Lovern · Answer

Tom, I'm looking at the NTS. It lists a reinstatement amount of approximately $25K and a principal sum of approximately $350K. I've looked at hundreds of King County, Washington State NTS's and most that I've seen list a reinstatement amount, smaller than the principal sum shown.

Greg Lovern · Answer

Thanks Tom, but the Notice of Trustee Sale says that the reinstatement amount must be paid by Jan 7th (11 days before the auction), a week ago. So I think I need the lender to grant an extension.

Greg Lovern · Answer

Thanks Sam -- if I understand correctly, the owner will need to get the lender to postpone the auction, based on the fact that I have cash ready to reinstate. Is that correct?

How to get non-judicial foreclosure auction date postponed

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