Now that our House is in Foreclosure .... typically how long do we have before we are forced to leave ?

Question

Does anyone know anything about this process ? We are going through some rough times and I just wanted to be aware of what lies ahead. Thanks, Robyn

Answer 1

It depends on how busy your bank is but no sooner than 3 months from date of default.

Umm...if you are going to foreclose then it's better to just give the bank the deed rather than squat in the property.  If you just squat in the property, will be liable for all of their legal fees, too.  

Answer 2

It varies by jurisdiction but it can be maybe a month to 3 months from when the eviction notice is filed (takes about 45 days for where I am).  After the house is foreclosed on (ie sold on the courthouse steps and goes back to the bank if not sold) the owner will still have to evict you if you refuse to leave, and this could take another month or 2.  So, its not really a fast process and there are things you can do to slow if down (go to court and contest every filing - declare bankruptcy before the foreclosure process is complete) but eventually you will get sent packing.

FYI, if you have a place to stay (with friends or something) it may be worth it for you to ask the bank to pay you to leave (called "cash for keys") as it will save them alot of trouble.  

Answer 3

This is how it worked for a friend of mine.  They got a letter in April telling them they had until June 15 to pay all the arrears, penalties and fees.  Then they got another letter from a lawyer in late July telling them they had to go to court on Aug 5, and vacate by Aug 10.  They didn't go to court, and as of now nothing has happened about that.  They did move out.  They basically packed up everything they owned and put most of it in a storage locker.  They took the pieces of furniture they need now, and moved in with his parents.  They live in Jefferson County, MO, just south of St. Louis.  I don't know anyone else who's had this happen well enough to know the details.

Answer 4

I don't know how long it will take but I will keep you  and yours in my prayers.

Answer 5

The process (and time frame) varies greatly by state. In some cases, it's quite short--60-90 days. In other cases, it can be 9 months or more.

Remember that there's a period of what might be called pre-foreclosure, and that's probably what you're in. What happens, first, is that you miss payments. The lender communicates to you that you're delinquent. During that time, it's best to try to work out some arrangement with the lender. And/or you can try to sell your home. If you have enough equity, you can just sell it "normally." If you don't have enough equity--if you owe more than the house will sell for--you can attempt a "short sale."

At some point--often around the 4-5 month point--you receive a communication from the lender notifying you of the date at which your home will be sold at auction, or otherwise transferred ownership. You have up to that point to attempt to get your home back, or to sell it.

If you have any equity in the property, you should try to sell it. If you don't, try negotiating with the lender. Simultaneously, attempt a short sale. A Realtor can tell you how that works.

At the sale date, either someone will bid at auction and become the new owner, or no one will bid (or bid high enough), and your lender becomes the new owner. At that point, you no longer own the house and should be prepared to leave immediately.

But, to address your specific question, you're allowed to stay in the property until ownership is actually transferred, which will occur on the auction date.

Consult with a real estate lawyer for further details.