A Foreclosure Auction Has Been Scheduled For My Property. What do I do?

Lake County foreclosure lawyer

A Foreclosure Auction Has Been Scheduled For My Property. What Do I Do?

It can be heart-wrenching to discover that your property is scheduled to be sold at a foreclosure auction. People often become aware of a foreclosure auction when they are actively participating in the foreclosure court case and are provided an official “Notice of Sale” from the foreclosing bank’s attorney. If you have not filed an appearance in the foreclosure court case, then it is possible the auction may be scheduled without you even being aware of it. But if you are living in the property then the foreclosing bank is required to provide you a Notice of Sale even if you have not filed an appearance in the foreclosure court case.

How Does the Bank Conduct the Foreclosure Auction?

In order to have a foreclosure auction in Illinois, the bank must obtain judgment against the Defendants, and the court order must reflect that the bank has the authority to sell the property at a foreclosure auction.

If the property is located in Cook County, and certain other surrounding counties, then the bank will use the Judicial Sales Corporation to auction the property. If the property is located in Lake County, the Lake County Sheriff’s Office conducts the auction at their Waukegan office. Both organizations maintain an online list of properties awaiting auction. The lists will state whether a pending auction has been canceled or not, the minimum bid, or whether an auction has already occurred.

Any party may bid at a foreclosure auction, but the key is that 25% of the sale price must be provided in cash immediately, and the remaining amount must be provided in cash within 24 hours. This makes it exceptionally difficult for anyone to bid at the auction outside of the foreclosing bank itself and property investors looking to snatch up properties for resale or rental. Because of this, properties tend to sell for much less than they would sell for on the open market.

Once the foreclosing bank has conducted the sale, the sale must be approved by the foreclosure court. The subsequent order is known as an Order Approving Sale (OAS) and is usually the last hearing in a foreclosure matter. Banks may obtain deficiency judgments against the homeowner, permitting the bank to go after the homeowner for money even after the foreclosure has completed.

What Steps Can be Taken to Stop a Foreclosure Auction?

If you are facing a foreclosure auction, you may desire to delay or stop the foreclosure auction from occurring. Generally speaking, if the foreclosing bank has received judgment in a foreclosure matter then it is entitled to sell the property at a foreclosure auction. However, foreclosing banks are also required to comply with loss mitigation programs and should not proceed with an auction until they have exhausted all options. It is possible to ask the foreclosure court to prevent a bank from moving ahead with a foreclosure auction until loss mitigation options are complied with. A court can hear a motion to stop a foreclosure auction on an emergency basis. If there is good reason to ask the court to stop the sale, then you should speak with a foreclosure defense lawyer to represent you in the foreclosure matter.

It is also possible to ask the bank to voluntarily stop the foreclosure auction. Sometimes this method works, but there is no guarantee the bank will stop the sale or keep its word. It is common for a bank to tell a homeowner that it will not proceed with a foreclosure auction but nevertheless sell the property.

Contact the Gurnee Foreclosure Defense Lawyers at Johnston Tomei Lenczycki & Goldberg LLC Today

If you are going through foreclosure and are afraid of losing your home at a foreclosure auction, then speak with the foreclosure defense attorneys at Johnston Tomei Lenczycki & Goldberg LLC. We offer a no charge initial consultation to determine what defenses you may have available and whether it makes sense for you to apply for a loan modification, or walk away from the property via short sale or deed in lieu. Call us today to determine whether you can save your home from a foreclosure auction.

Call the Gurnee Foreclosure Defense Lawyers at Johnston Tomei Lenczycki & Goldberg LLC Now