You Still Have Time To Sell - yes that is correct. You have a six month redemption period (this is the standard but could vary) which begins the day of the auction. During that six month time period you can exercise your right to list and sell the property and receive the net proceeds. (Contact your tax preparer or attorney to further discuss any deficiency).
Example of net proceed scenario:
- You owed $100k on your mortgage
- House sells at auction for $75k
- Fair market value is $110k
The difference between what it sold for at auction and fair market value, minus standard real estate fees and costs (such as paying off the sheriff sale deed), is your equity.
In this case this would mean you could walk out of closing with a check in the range of $18-20k!
The home needs to be in fair market value condition and habitable to get the most from your equity.