My Home is Going for Auction - What Can I do?
A Notice of Sale, which is required to be served upon you will notify you of the specific date and time that your home will be auctioned. This will usually be in the Supreme Court of the county in which your home is located. Two methods can be utilized to stop the sale.
File for Bankruptcy ProtectionA homeowner can file a Chapter 7 or Chapter 13 bankruptcy and this will automatically stop the sale. Today, an attorney can file your petition electronically with the court, so in essence a bankruptcy can be filed the evening before the scheduled auction, or even the morning of. After filing for bankruptcy, your attorney will immediately notify the bank's lawyer, the referee and the foreclosure part in the specific court where the auction was to be held to put everyone on notice of the bankruptcy filing. Once the bankruptcy is filed the auction will not proceed.
File an Order to Show Cause in the Foreclosure LitigationThe second method by which a homeowner can stop an auction sale is by filing an Order to Show Cause ("OSC") asking for a Temporary Restraining Order staying the sale until your application is adjudicated. An attorney can file an OSC with the Court on several grounds, and if the Judge signs the Order this will stay (pause) the auction sale. The most common grounds upon which to seek such relief is to demonstrate a lack of service of process of the summons and complaint on the homeowner, and/or the bank's failure to meet certain pre-foreclosure conditions (such as the filing of the 1304 notice). The specifics of each ground is beyond the scope of this guide and should be discussed with your foreclosure defense attorney.