How to Turn in House Keys After a Foreclosure

A foreclosure is often the conclusion of a long process of negotiation with your bank, but what happens next? You will need to vacate your house after a foreclosure, but the proper way to turn in your keys depends on the terms of your agreement.

Instructions

1. Understand your rights. Before you even begin to deal with your bank on how and when you need to turn over your keys, know what rights you have under the laws of your state. State law determines how quickly your bank can require you to vacate and hand over the keys, so find out what your legal entitlements are.

2. Ask your bank. The owner of your loan--the company that took over ownership of your house--will tell you their usual procedures for turning in keys. These procedures can range from leaving keys in the mailbox to turning them over to a real estate agent or bank representative.

3. Explore your options. You may be able to negotiate an arrangement under which you can postpone turning over your keys, even after your foreclosure. The bank or new owner may be willing to take you on as a temporary tenant, especially if they do not plan to immediately sell the property. If they do want you out quickly, you may be able to get a "cash for keys" deal. Under this kind of deal, your bank will negotiate a fee with you that they will pay in exchange for you turning over your keys. Note: These kinds of arrangements usually depend on you keeping the home in good condition.

References

• Loan Workout: How Long Can I Live in My House After a Foreclosure?
• Wall Street Journal: Buyer's Revenge
• Foreclosed Dreams: Eviction After The Foreclosure Auction

Resources

• Loan Safe: State Foreclosure Laws