In sure jurisdictions, after a property is offered at a foreclosures sale, a particular interval exists throughout which a 3rd occasion can submit the next bid. This motion, undertaken with trustworthy intent and with none goal to defraud or take unfair benefit, successfully cancels the preliminary sale. This increased bid should adhere to established guidelines and procedures, typically involving a deposit and a proper provide submitted to the courtroom or trustee overseeing the foreclosures.
This chance protects the foreclosed house owner by doubtlessly rising the funds obtainable to repay the debt owed and any surplus returned to them. It additionally permits others who could have missed the unique public sale to take part in buying the property. Traditionally, this apply has roots in equitable rules geared toward stopping unfair or insufficient costs achieved throughout foreclosures gross sales, significantly when market situations would possibly suppress bidding.
