How Long Can You Remain in the Home After a Foreclosure Sale Occurs?

Once every other remedy to avoid foreclosure fails, such as arranging a short sale, reinstating the loan, or negotiating a loan modification, what comes next? After the home has gone through the foreclosure process and a sale has been completed, many assume that it is a foregone conclusion that they must move out immediately. While it is true that you likely do not have much time at your disposal at this point to remain in the home, the actual amount of time during which you might be able to stay may vary a good deal depending on a number of factors.

If A New Owner Buys The House

If the home is sold at auction to a new owner, chances are that the owner will want you out of the property as soon as possible. The process of getting you out of the home usually begins with a termination notice that you might receive either days or weeks after the sale occurs. The actual amount of time will vary depending on the experience of the new owner with such matters, and removing tenants from a property.

Note that this process will also vary depending on whether the new owner is an individual who wishes to move into the property him or herself, versus a company that is in the business of buying and selling repossessed properties. In the former scenario, a termination notice is likely to come sooner, while in the latter case it may take longer to receive a notice simply for bureaucratic reasons.

If The Bank Winds Up With The Home

If, on the other hand, the home does not sell at auction and the bank winds up keeping title, you probably will have as many as three to six months more to stay in the home without making a payment. Again, this is determined by a number of factors.

First, it makes a difference whether the bank has an existing relationship with a real estate agency in your area. Banks are experts at creating loans, NOT selling real estate. They rely on real estate agencies to move properties for them, and if they do not already have such a relationship in place in your area, it can take time to set that up.

An additional consideration is the demand for homes in your area. If there is a large supply of homes on the market, and in particular homes which have been lost to foreclosure, it can be a difficult proposition to move the home. If there happens to be a large glut of vacant homes in the area, the bank may be less likely to be in a hurry to get you out, as vacant homes tend to drop in value a good deal more quickly than occupied ones.

Another important factor for the bank is going to be how many other foreclosed properties are already on their books. If they are working through a large volume of foreclosures already, the priority to get you out of your home is going to be a good deal lessened. Conversely, if the lender has few homes on its books, your presence in the home is likely to garner more immediate attention from the bank, and a higher priority will be placed on moving you out of the home and getting it into a saleable position.

Conclusion

As with many things related to foreclosure, what actually happens can vary greatly depending on both state laws and the individual circumstances. This variability underscores the wisdom of seeking out qualified counsel at each step of the process.

Nick writes for the ForeclosureFish website, which has been created to give meaningful financial advice to homeowners and debtors who are facing economic difficulties. In over 1,000 articles published since 2006, the site has covered such topics as foreclosure, general legal information, bankruptcy, personal finance, and more. Visit the site to read more about loan modification and other potential remedies to foreclosure. You can also download a free e-book explaining the basics of foreclosure at http://www.foreclosurefish.com/