Reclaiming Property Post-Foreclosure: Ascent Law's Guide

How Can I Get My House Back After Foreclosure?

The truth is – it is very hard to get your house back after foreclosure. It is possible, but it is very difficult.

Even after you lose your house to a foreclosure sale, you still may have a few ways to get it back.

Buy It Back

The first option is to buy your house back from whoever bought it after your foreclosure auction. This could be the bank or an investor or someone else. This is more likely to happen if it was your lender that bought it at foreclosure, but its possible even if it was someone else. You will probably need 3rd party financing (which may be difficult or impossible to get). Sometimes, your lender will refinance your purchase, so you should at least ask the question if you have the income to support the payments.

Right of Redemption

Some states and in some situations there is a right of redemption after a foreclosure sale. This is a period where you (as the previous owner) can repurchase the home by paying the total purchase price plus interest and any allowable costs to the person that bought your home at the sale. Filing a bankruptcy can give you even more time to take advantage of your redemption rights, but this varies from state to state. Talk to a bankruptcy attorney if you have questions.

Legal Avenues

Under certain circumstances, a court can set aside the sale of your home. If your lender did not follow the correct procedures during the foreclosure process, including properly notifying you, you may be able to get the court to set the sale aside, which will make it so that the sale never legally happened. If you think this is the case, discuss your situation with a lawyer experienced in these matter.

Don’t Leave Your Equity Behind

If there was equity in your home after it was sold, you may be legally entitled to it. You should expect your lender to deduct appropriate fees for servicing your account and processing the closing of your loan, but go over every fee carefully to make sure they make sense. Some lenders have been known to tack on fees simply to eat up all the equity so they don’t have to pay you what you are owed. If you are in this situation, contact a local lawyer familiar with foreclosure law.

The other option to get the house back is to have your sheriff sale reversed. In many cases, there are legal discrepancies or rules your lender did not follow. With a good attorney, who is familiar with the foreclosure process, you can use the law to your advantage. Once the sheriff sale is reversed, your lender will start again, correcting their mistakes, so you must act fast and raise the money you need to get your house out of foreclosure completely. This is only a temporary solution but it can give you the time you need to put together a permanent solution.

Finally, you should consider using a private investor, friend, family member or clergy member to buy the house from the bank at the foreclosure sale (if possible) and have them rent or sell the house back to you. Technically, this should be done at the sheriff sale or foreclosure auction, or after the sale if the lender buys the house. There are many options that would allow the house to be sold before the foreclosure or even with a short sale, to another party. The purchaser could sell the house back to you. This could be through a new mortgage, if you qualify, or with a lease or buy-back agreement.

Either way, you now have possession of the home and could have a route to obtain ownership at a time when your credit improves. You may need credit repair services. You must be careful when doing something like this because there are rules and laws you must be aware of. You should use a real estate agent and/or real estate broker along with a real estate attorney to help you deal with this option. Don’t go it alone.

If you have already lost your house to foreclosure, there may still be hope. Call Ascent Law right away to discuss your situation. The sooner you call the better. Just make sure you choose the right method for you and find a foreclosure law attorney to get your house back after the foreclosure process has started. If you have a solution that will allow all parties to be happy and walk away from the situation satisfied, it may be worth pursuing right now.