When a person falls behind on loan payments for their house or other property, the lending institution has the legal right to foreclose on the land and initiate proceedings to sell the property. Typically, they will appoint a trustee, often the local sheriff or a legal representative, to arrange a trustee sale. Trustee sales function like auctions and require all those interested in bidding on the property to be able to pay in cash.
Ways to Prevent Trustee Sales
The lending institution that wishes to initiate a trustee sale process must first notify the individual that they intend to sell the property. If you receive this notice, you may be able to file a trustee sale legality challenge, which can delay the sale for significant lengths of time. To be able to file this challenge, however, your situation may have to meet the following criteria:
- The trustee sale date is within 30 days
- The borrower has filed for bankruptcy or has been denied a loan modification
- The borrower needs more time to facilitate a sale or loan modification
A person in any of these situations may be able to delay the trustee sale of their home or property, sometimes indefinitely.
If you or someone you know is unable to meet the financial obligations on your home or property, a trustee’s sale of your home may be initiated. If this occurs, you will lose both the payments you have already made on the loan as well as the property itself. However, a talented attorney may be able to help. Contact the Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC, today at 414-377-0518 to learn more.