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Is it possible to recover a property after foreclosure?

Property foreclosures pose dangers to one’s wealth. But even when a lender foreclosures, you haven’t necessarily lost your property. If the lender repurchased the property it’s possible to convince them to sell your foreclosed asset back to you, whether it is your home, auto, or boat. After going to the expense and trouble to foreclose, why would a lender sell you back foreclosed property?

Oftentimes, the lender may have anticipated selling the property for more. If the sales price fell far short, the lender may re-sell you your property for the note balance or even less. If the foreclosure eliminated other liens against the property the lender may now also see you as a better credit risk. Also, filing bankruptcy or otherwise clearing your other debts makes you a candidate for a re-sale. Lastly, your lender may want to quickly dispose of the property to avoid further costs or liability from holding the property.

In most states, a borrower can redeem autos, boats, or planes after repossession. You can then reinstate your loan and reclaim your vehicle by paying any overdue installments, late fees, and legal repossession costs. However, this redemption right is not absolute. You can't reinstate the contract and reclaim your vehicle if you:

  1. Once had the installment contract reinstated
  2. Concealed the property to avoid repossession
  3. Damaged or neglected the property
  4. Physically interfered with repossession
  5. Misrepresented your creditworthiness

Your lender must give you notice of your right to reinstate, or you might reclaim the property even without making overdue payments, but you must punctually pay future installments. To reinstate, notify your lender. If you fail to reinstate the contract or loan within the time stated in the installment agreement (usually 60 to 90 days), the lender can hold you responsible for the loan balance and notify you of their intent to sell the repossessed property. You can then reclaim the property by fully paying the loan.

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Categories: Foreclosure
The Presser Law Firm, P.A. - Asset Protection Attorney
Located at 6199 N. Federal Highway Boca Raton, FL 33487. View Map
Phone: (561) 953-1050