What Happens After Foreclosure

What happens after foreclosure will vary and depends in large part on what state you live in. Some states have a redemption period , which allows the original home on or to buy back their property. This is after the house has been auctioned and the homeowner will have to pay the auction price. Depending on what state you live and the redemption period can be as little as three days or as long as a year.

If you live in a state without a redemption period, or if the time has expired, after foreclosure you will be forced from your home. Only an order of the court can force you to leave your home. Ultimately you may be evicted but there are procedures within the court system that the mortgage holder must follow first for the foreclosure and then another set for the eviction.

Sometimes, you can get the purchaser to give you “key money” to leave the premises quickly and to leave the property in good condition. It is not uncommon for the foreclosed homeowners to destroy the property before they leave. The buyer knows it is worth their while to induce you to leave nicely.

After foreclosure, if the homeowner does not leave the property, then the new owner can file for an eviction notice. If the occupants or the foreclosed homeowners, they will usually have only three days after the eviction notice in order to leave.

If that happens, not only will you have a foreclosure on your record, but an eviction as well. Both of these things can make it very difficult to rent property after you lose your home.

The foreclosure process even when followed through to completion only transfers ownership of the house from you to the high bidder. This transfer of ownership becomes complete at a closing following the foreclosure auction. After the auction you automatically become a tenant in the house you formally owned. At this point the new owner must follow the legal procedures in your state for eviction.

If working from your first late payment there are at least 10 or 20 different ways to resolve the situation. The longer you wait, however, the more some of these options will become unavailable.

What happens after foreclosure is something that you want to avoid if at all possible. See if you can work with your mortgage holder, lender, bank, etc. Remember that they aren’t looking to take your home back, but would much prefer to see payments brought up to date.

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