A home is often a family’s most valuable possession. A sheriff’s sale, when confirmed, formally transfers ownership of the home to the auction buyer and eliminates any property rights that the prior owner had in the home. The CDA is also part of the statewide effort to prevent foreclosures through a partnership with the Minnesota Homeownership Center and Fannie Mae.
Banks disbursed loans based on sales and purchase agreement (SPA) price, instead of the actual house price, less rebates and freebies. Your lender might be willing to rewrite the terms of the homeowner’s loan to address a delinquency. You do not need to leave you home simply because you miss a couple of mortgage payments.
They may end up lowering their payments by several hundred dollars a month, or they may qualify to consolidate all of their monthly debt payments into one cheaper, more manageable mortgage obligation. Homeowners who have requested mediation should watch their mail – notice of the date of their mediation hearing will come from the OAH.
They may modify your loan or come up with some sort of payment plan. However, a person having an interest in the real property may appear before the clerk and move for the foreclosure judgment to be set aside on the ground that the tax has been paid or that the tax lien upon which the judgment is based is invalid.
When you purchase a foreclosed home, or REO property, you won’t have to deal with the previous homeowner because the bank now owns the home. Even this simple act of explanation may require filing paperwork in the court and having the government remove the locks that were changed or allowing the legal owners access to their own property.