Foreclosure Auction: Postponed May not Equal Cancelled!

In a recent case, Harbin v. Roundpoint Mortgage Co., No. 18-11713 (11th Cir. Dec. 17, 2018), the Eleventh Circuit confronted a situation where a borrower applied for a loan modification and was told that the foreclosure sale was “temporarily postponed.”  This borrower decided not to file bankruptcy to stop the foreclosure when she was told this by her mortgage company.  Who wouldn’t?  When the sale went through anyway, she sued.  The appellate court held that the borrower “reasonably could have believed . . . that the foreclosure had been ‘suspended temporarily'” and that the statement was ‘material’ because it was the key to [the borrower’s] decision whether to file for bankruptcy before the June 3 sale.”

Beware out there – consult with a foreclosure defense attorney or a bankruptcy attorney to make sure you know what’s going on with your home if it is in foreclosure — and the various options on how to keep your home.