Question

Farquhar bought a house at a foreclosure auction. A few weeks later, he was notified that he couldn't take possession of or title to the property. What likely happened?

a) The lender received another offer higher than the one Farquhar made at the auction.
b) The lender revised the previous owners' loan and permitted them to remain in the property.
c) The other lien holders protested the auction sale, so the lender retained the property.
d) The previous owners redeemed the property by paying all mortgage payments and fees.

Answer 1

The most probable scenario is that the previous owners exercised their right to redeem the property by paying off the mortgage and fees, reclaiming their foreclosed home after Farquhar's auction purchase. Correct option is

Step-by-step explanation:

Farquhar bought a house at a foreclosure auction and was later told he couldn't take possession of or title to the property. The most likely reason is that the previous owners redeemed the property by paying off all mortgage payments and fees.

This action is known as the right of redemption, which allows homeowners to reclaim their foreclosed property if they can pay off their debt in full within a certain period after the auction.

Another possibility, though less common, is that other lien holders protested the auction sale leading to complications with the transfer of the title. Lastly, it is feasible that the lender revised the loan with the previous owners, but this typically would occur before the auction sale is finalized.