In sure jurisdictions, after a property is bought 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, usually involving a deposit and a proper provide submitted to the court docket or trustee overseeing the foreclosures.
This chance protects the foreclosed house owner by probably growing the funds out there 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 follow has roots in equitable rules geared toward stopping unfair or insufficient costs achieved throughout foreclosures gross sales, notably when market circumstances would possibly suppress bidding.
