How to Cancel a House Auction. Yes, you can cancel a house auction. How you cancel the auction depends on the circumstances. If your house is in foreclosure, you'll need to file legal papers with the court to stop the sale of your house. If you are selling your house through an auction company, as many people do, the sale can be canceled according to the contract signed with the auction company.
When the Auction is Contracted
Read the contract you've signed with the auction company for the terms of the contract. Most contracts can be canceled if a fee is paid for the services already rendered by the auction company. The fee may be a flat fee or a percentage of the value of the house.
Contact the auction company immediately, before any further sales promotions are done. Speak not only to the auction agent with whom you've signed the contract, but also to the manager. Make sure they know the contract and the sale is being canceled. Send a written cancellation notice by mail or fax, as well.
Pay the cancellation fee as soon as possible, preferably the day that the contract is canceled. Make sure you pay with a check or certified bank check, this will be your receipt. Make copies of everything, including the check, before sending it to the auction company.
When the Auction is Court Ordered
Contact the foreclosure representative of the bank or institution to find out their procedure for stopping a foreclosure. Make a note of the date and time you called, as well as the person's name and title. Ask the representative to fax and mail the information to you. The information will include the name of the bank's attorney, attorney fees, reinstatement fees and back payments due. This settlement statement will be up to date, based on the date you contacted them.
Pay the debt owed according to the settlement statement you've received. Always try to pay in person, drive to a local bank if your mortgage is with their company. Pay with a certified bank check and make sure you have made copies of the check before paying. Get an official bank receipt immediately, while you are there. Do not allow them to mail you the receipt, as you need it to stop the foreclosure. Ask for several copies of the receipt and keep the official receipt for the courts.
Call the foreclosure representative at the bank or institution to inform them the debt has been paid. Get the person's name and title for a fax. Fax a cover letter with all the information needed, your name, address, phone number, account number, amount paid and date paid. Include a copy of the check used to pay the debt and the receipt from the bank in your fax. Send the same information to the attorney who is handling the foreclosure for the bank.
File a petition with the court to dismiss the foreclosure sale and foreclosure. File the official bank receipt and copy of the certified bank check with the Clerk of Court. Do not leave this step to the bank's attorney, do this yourself or have a lawyer or paralegal do it immediately. Court petitions can be found at some online sites or at the law library of your local courthouse. Ask the Clerk of Court for a legal copy of everything you've submitted to the court. Once these papers have been officially filed, and the petition approved and signed by the judge, the auction proceeding against your house will be canceled.
Check with the bank or institution, the attorney and the official court records to make sure every document necessary has been submitted to the court. You will receive a copy of the official court document dismissing your foreclosure case.