Home in Foreclosure Limbo

5 Replies

Hello BP Family,

I contacted a person listed as the homeowner of house that I noticed was vacant. When she responded to my letter she indicated that she filed bankruptcy 3 years ago and moved out of the house at that time and the house has been vacant all this time.  There was a short letter taped to the window of the house advising to call the number in the letter for questions about the house. When I called they informed me that the house hasn't been scheduled to be auctioned yet and said that I should keep checking their website every few weeks to bid on it in their online auction.

Is there nothing that can be done with this house until it goes up for auction? I find it strange that it was been vacant for 3 years and that it is still listed in the previous owner's name. Is this normal?

Thanks in advance for your help!

@Jeorgia Brown The property will show in the "previous" owner's name until auction. She still legally owns it until that point. After the auction the courts will issue a deed placing the purchaser at auction in title to the property. 

As far as the length of time goes, each foreclosure case varies as to how long it can take. Perhaps there was a lienholder the bank had a difficult time tracking down to provide proper notice, maybe the lady filed bankruptcy AFTER foreclosure proceedings were filed (this always throws a wrench in things). Any way it goes, dealing with foreclosures like this can be a lengthy process sometimes. Good luck!

Yes, BK does not transfer ownership, the bank still has on ore loses.  I have one now, BK in 2008, no active mortgage foreclosure in process.

Updated almost 4 years ago

"Bank still has to foreclose".


I run into the same issue sometimes on vacant properties.  These properties are sometimes in the foreclosure process and you can't find the owner of record and can't get a hold of the asset manger at the bank contact. It's kind of in between.  So because the property is in some cases not foreclosed on yet the agent can't sell it yet. 

I am also running into the same thing with reverse mortgage foreclosures. Many of these properties in decent if not really good condition.  I am looking at find ways to get to the heirs before the bank starts the foreclosure process in order to make an offer on the property.

Thanks @Wayne Brooks, @Jim Viens, and @Karl Smith. Sounds like I'll have to be patient.

We are facing the same issue. There is a house that has been vacant and we finally got a hold of the bank and they said the same thing, they cant sell it yet because technically it still belongs to the owner but he cant sell it either I guess. Its a shame that this house never came up in preforeclosures otherwise we might could have saved his credit and got the house as well. 

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