In all circumstances, the lender itself can stop the foreclosure process mid-stride.
Some states allow the auction to be resumed at a later date after the publication of some sort of notice. Other states require the lender to start all over again. It is easier to negotiate with lenders in states that allow brief interruptions without starting over because the lender knows it can resume foreclosure if negotiations break down.
Many states give the borrower, and sometimes junior lienholders, the ability to cure the default and stop foreclosure.
When allowed, curing takes place by catching up all the past due payments and reimbursing the creditor for all its preforeclosure expenses up to that point. States that allow this right have different time periods for the cure. Refer to Appendix C for more details.
Bankruptcy will also stop the foreclosure process. A good understanding of bankruptcy is essential for any foreclosure investor. At this point, it is enough to know that many foreclosures stopped by bankruptcy are merely delayed and not completely stopped.
You can continue to monitor the debtor’s progress, and you may have an opportunity to purchase the property at a later date.