Ownership of Foreclosed Home Not Transferred After Auction

At the end of the foreclosure process, once all of theThere are a number of ways to find out if a property
notices have been sent and published and the lawsuithas been sold or if an auction has been confirmed.
has ended, a public auction is held to dispose of thePossibly the easiest way is for homeowners to call
property. This typically called a sheriff sale or trusteethe county recorder's office or the clerk's office and
sale, and is the event during foreclosure whereask them to provide the information as to who
borrowers' ownership interest is transferred to thecurrently owns the property, as well as any liens on
buyer at auction. But sheriff sales do not always gothe property right now. If the bank purchased it, there
smoothly, and homeowners may need to find out ifwill most likely be no liens, but if a third party took out a
their home was sold or not.loan to buy it, there may be a new mortgage affecting
For instance, if the lender called off the scheduled salethe deed.
for any reason, homeowners may believe that theirThis would be the easiest way to determine the status
property was sold out from under them when theyof the sheriff sale, since the county in which the
are, in fact, still the owners. Banks cancel auctions forproperty is located keeps all of the records affecting
any number of reasons, from not having an inspectionthe property. If the foreclosure went through but there
done, to waiting for an appraisal, to a response by awas a problem with the sale, they will be able to give
request for more time from the borrowersthe homeowners that information, while the court will
themselves.be able to inform them if a new auction has been
Another factor that may cause a sheriff sale to bescheduled yet.
scheduled but not confirmed is if a third party bids onBut if no documents have been recorded to show a
the home, wins the auction, but can not pay thetransfer of ownership, then the house may have to be
purchase price. If this is the case, the property mayauctioned again at a later date. Especially if it is a few
have to be put up for auction again, in the hope ofmonths after the scheduled auction and no documents
finding a more willing and able buyer. If this happens,to show a transfer of title have been filed, it may
though, homeowners may not even know the firstindicate that the sheriff sale was not valid. This may be
auction did not count, as they assume the house wasdue to any of the reasons listed above, but especially
sold and paid for.if the high bidder could not pay, the house may just be
This is why, after a sheriff sale, it is important forauctioned again.
homeowners to make sure that their home wasIn the meantime, the original owners might still have
actually sold and properly confirmed by the county. Ifpossession and legal ownership rights of the property,
the property was not sold, the borrowers may be ablejust as they had during the foreclosure process.
to keep living in their home until a valid auction isAccording to many state foreclosure laws, it is the
conducted. This may take an additional two or threeconfirmation of the sale that finally transfer ownership
months to schedule, conduct, and confirm, and all ofto the high bidder at the auction -- if that has not been
this time can be used by the homeowners to save updone in a particular case, the borrowers may still own
more money.the property for now.