Resources
Everything you need to understand your rights and options — whether you are facing a tax foreclosure, a mortgage foreclosure, or recovering surplus funds from either.
Foreclosure Prevention Guide
If you're facing foreclosure, the most important thing is to act quickly. Here are the steps you should take immediately:
- Don't ignore the notices. Every notice you receive has deadlines attached. Missing them limits your options.
- Contact AuctionBlock immediately. Email info@auctionblock.org for a free, confidential consultation.
- Gather your documents. Mortgage statements, tax notices, income records, and any correspondence from your lender or county.
- Know your timeline. Foreclosure timelines vary by state and by type. We'll help you understand exactly where you stand.
- Explore all options. Loan modification, forbearance, tax payment plans, hardship programs, surplus funds recovery.
Resources by Foreclosure Type
Tax Foreclosure Resources
When property taxes go unpaid, the county can sell a tax lien or the property itself. Understanding the process is your best defense.
- •Tax payment plans. Most counties offer installment agreements for delinquent taxes. Contact your county treasurer's office to request one before the sale is scheduled.
- •Tax lien vs. tax deed. In tax lien states, an investor buys the lien and you have time to pay it off. In tax deed states, the county sells the property directly. Know which process your state uses.
- •Redemption periods. Many states give you a window after the sale to “redeem” your property by paying the taxes owed plus fees. Deadlines range from 6 months to 3 years depending on the state.
- •Surplus funds. If the property sells for more than the taxes owed, you are entitled to the excess. Read our full guide →
Mortgage Foreclosure Resources
When you fall behind on mortgage payments, your lender can initiate foreclosure. There are more options than most people realize.
- •Loan modification. Your lender may agree to change the terms of your loan — lower the interest rate, extend the term, or reduce the principal — to make payments affordable again.
- •Forbearance. A temporary pause or reduction in payments while you get back on your feet. Contact your servicer as early as possible to request this.
- •Judicial vs. non-judicial foreclosure. In judicial states, your lender must go through the courts. In non-judicial states, they can foreclose through a trustee sale. Your rights and timeline differ significantly depending on which process applies.
- •Right to cure. Most states give you a period to bring your mortgage current before the foreclosure can proceed. This is often your best opportunity to stop the process.
- •Deficiency judgments. If your home sells for less than what you owe, the lender may seek a deficiency judgment for the difference. Some states limit or prohibit this.
- •Surplus funds. If the property sells for more than the mortgage balance (plus fees and junior liens), the surplus belongs to you. Read our full guide →
Surplus Funds Recovery Guide
If your home was sold at a foreclosure auction — whether for unpaid taxes or a defaulted mortgage — and it sold for more than what was owed, you may be entitled to the excess funds. Counties and courts often hold these “surplus funds” without proactively notifying the former owner.
Our free guide covers how to check if you have surplus funds from either type of foreclosure, a state-by-state reference for claim deadlines and procedures, your legal rights, and how to avoid scams.
Read the Full Guide →Know Your Rights
Federal and state laws provide significant protections for homeowners facing foreclosure:
Right to Notice
You must receive proper written notice before any foreclosure action begins — whether from your county (tax) or your lender (mortgage).
Right to Cure
Most states give you a period to pay overdue amounts — back taxes or mortgage arrears — and stop the foreclosure.
Right to Surplus Funds
If your home sells for more than the debt owed (taxes, mortgage, or both), you are entitled to the excess.
Right to Legal Counsel
You have the right to legal representation at every stage of either type of foreclosure process.
Right to Reinstatement
In most mortgage foreclosures, you can reinstate the loan by paying the past-due amount plus fees before the sale.
Right to Redemption
Many states allow you to buy back your property for a period after a tax sale by paying the full amount owed.
Frequently Asked Questions
Is this really free?
Yes. AuctionBlock is a mission-driven company. All our educational resources are completely free. For surplus fund recovery, we charge a flat $2,000 fee only if we successfully recover your funds.
What if my auction is next week?
Email info@auctionblock.org immediately. We have emergency procedures for imminent auctions.
Do I have to live in Oregon?
No. While we are based in Oregon, we serve families in all 50 states.
Will this affect my credit?
Working with us does not affect your credit. We help you explore options that may actually protect your credit score.
What happens to my equity if the bank forecloses?
If your home sells at a mortgage foreclosure auction for more than what you owe on the mortgage (plus fees, costs, and junior liens), the surplus belongs to you. You have a legal right to claim these excess proceeds. Many people do not realize this money exists.
Can the lender come after me for the remaining balance?
It depends on your state. In some states, lenders can pursue a "deficiency judgment" for the difference between the sale price and what you owed. Other states are "non-deficiency" states that prohibit or limit this. Contact us and we can help you understand the rules in your state.
What is a deficiency judgment?
A deficiency judgment is a court order requiring you to pay the difference between what your home sold for at auction and the remaining balance on your mortgage. For example, if you owed $200,000 and the home sold for $150,000, the lender could seek a $50,000 deficiency judgment. Not all states allow this, and there are often time limits and protections available.
What is the difference between tax foreclosure and mortgage foreclosure?
A tax foreclosure occurs when a government entity (county or municipality) sells your property to recover unpaid property taxes. A mortgage foreclosure occurs when your lender (bank or loan servicer) sells your property because you have defaulted on your mortgage payments. Surplus funds can result from either type, and the claim process differs for each.