Foreclosure Eviction Process
Eviction at the end of an often brutally stressful foreclosure process can put a major strain on the people who have just lost their home. After the foreclosure itself is finalized and the home in question has been auctioned, the previous residents will be evicted from the home so that the new owners (who purchased the home at auction) can move in.
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Lead-Up
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Before a foreclosure eviction can even occur, the former owners have to default on their mortgage and, despite warnings and threats from their bank, not pay up what they owe on their home. The bank will then get a court to issue a foreclosure, the home will often be put up at a real estate auction and local law enforcement will issue an eviction notice. This notice should be issued with a reasonable amount of time given to the former owners to prepare to leave the home.
Time Frame
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The time frame of a foreclosure eviction can vary--it often depends on how promptly the bank/lender forecloses on the property and moves to have it auctioned. Depending on the state, there are laws that dictate how much time the previous owners have to move out of the foreclosed home once it has been purchased. The time frame can also be extended by a redemption period, which is a time some states give homeowners to attempt to pay up what is owed, even after an auction has taken place. The previous homeowners can also argue for more time at the eviction hearing, which takes place after the home has been foreclosed on.
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Significance
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Being evicted from one's former home is the final step at the end of the exhausting foreclosure process. This is a significant step because if the former homeowner cannot secure a redemption period or argue for more time before the judge at the eviction hearing, he may have used up all of his options. This will have serious repercussions on the former homeowner's financial future, and on his ability to purchase another home.
Effects
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As mentioned previously, the effects that a foreclosure eviction has on a homeowner can be devastating. If the former homeowner does not have a plan of where to go, she could quickly find herself homeless. In addition, the financial ghosts of foreclosure can follow her for years and impact her economic future and ability to obtain credit or loans.
Considerations
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It is important to keep in mind that laws on foreclosure and eviction vary from state to state. If you are in danger of foreclosure or are already facing foreclosure eviction, it is crucial that you educate yourself on the local laws that apply. Until you are literally removed from the home, there might still be avenues to pursue in order to try to maintain ownership of the residence. There are also nonprofit organizations, such as the Neighborhood Assistance Corporation of America, located around the country that can advise former homeowners on their options for moving forward.
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References
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