Most homeowners assume that once the foreclosure is through, they will be thrown out of their home instantly. Well, this isn’t the case. There are several factors that are still in place after the owner has been foreclosed. A time period is given to the homeowner to leave the home after the foreclosure happens. This can be 1 week – 4 weeks depending on the state in which they live.
In many states there is a period known as a redemption period. This period starts immediately after the foreclosure has happened. The homeowner s given a time period of 1 day – 4 weeks, during which time, they can pay back the outstanding amount of the mortgage loan. During this period the homeowner can take back the house even if the house has been sold. If the homeowner is able to pay back the mortgage amount, then the buyer is refunded the monies and the homeowner gets their original deed of the house back. This is the period during which the owner can’t be evicted. The homeowner should check whether such a redemption period is available in their state or not.
Even if there isn’t a redemption period that is applicable in the state in which the homeowner lives, the homeowner needn’t be evicted right away. It’s the responsibility of the new owner to get the homeowner evicted from the property after they have bought it. Depending on the local laws of the state, the eviction process can be short or lengthy. Usually the buyer of the house will get the eviction done much faster that the bank or the mortgage lender would be able to do.
In cases, where there are no buyers for the house at the foreclosure auction, the bank or the mortgage lender becomes the owner of the house. If these are large organizations, then it could take some time for the bank to get the previous homeowners evicted. The eviction process is also a legal process and this can take some time before the homeowners are completely evicted. For the homeowners this could be beneficial as they can use the time to look for alternative properties that will be more affordable than the current properties. Another advantage for the homeowner is that they don’t have to make any payment till the time that they are evicted from the property.
If however the previous homeowners haven’t vacated the home after the do stay, then the sheriff can actually force them outside the house forcefully. This is legal. Therefore it’s imperative that homeowners that have been foreclosed and their property has been sold at a foreclosure auction should start making alternative plans as soon as possible and move away before they are actually forcefully thrown out of the property.
Homeowner should never get to this point. If the homeowners are facing difficulty in paying back the mortgage loan, then they should approach their lenders. There are plenty of options apart from foreclosure. This can help them save their home and also the equity in the house effectively.
Julie Thompson, has been working on ForeclosureDataOnline.com studying the foreclosures market, helping buyers on the finer points of Eugene foreclosed homes.