- In a judicial foreclosure, the court sets a foreclosure date and holds the sale, usually at the courthouse or at the home itself. Interested buyers can attend and bid on the property as long as their bids cover the necessary amount to pay off the loan. If the auction fails because there are no bidders, then the home is granted to the lender and sold on the open market. However, there is usually a period of one to three months between the ruling and the foreclosure sale, which provides time to file a motion of withdrawal.
- Lenders may request to withdraw the foreclosure. Since they filed for foreclosure in the first place, lenders may find the withdrawal process easier than other parties, although they still must pay the court fees for the process. This type of motion to withdraw occurs when a borrower manages to gather enough money to fully pay off the loan, thus settling the debt. There is then no further grounds for the foreclosure and the lender withdraws it.
- Lenders may withdraw foreclosure sale plans for other reasons as well. For example, if a lender believes that a borrower may make a payment in the future or if the borrower is trying to work out an alternative, such as a short sale or deed in lieu, then the lender will want more time. In this case, the lender may file a motion to withdraw the current sale date and delay it for additional months.
- Borrowers may also be able to file a motion to withdraw the foreclosure sale, typically through the aid of a property attorney. This can only occur under certain circumstances involving the legality of the foreclosure. If the foreclosure does not follow the required standards, the borrower may have grounds to file for a withdrawal and dismissal of the case.
Foreclosure Sale
Lender Request to Withdraw
Withdraw and Delay
Attorneys and Motion to Withdraw
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