How to Remove Personal Items in Foreclosure

When moving out of a home in foreclosure, it is important to understand what items you are allowed to remove from the property. Items you consider personal property may actually be classified as fixtures. Some homeowners take everything, including the kitchen sink. This act, referred to as stripping the home, is illegal. A simple mistake or misunderstanding can be confused with the deliberate act of vandalism or theft. Your lender may require you to repay the cost of replacing the items. Even if the lender does not take action, the homeowners' insurance company has the authority to prosecute you.

Instructions

1. Distinguish between appliances and fixtures. You cannot remove fixtures from the home. In most cases, you have permission to remove appliances. To determine the difference between an appliance and a fixture, ask yourself whether or not the item can be easily removed from the home. A fixture generally requires tools for removal. Appliances can easily be unplugged or detached without causing damage to the home. For example, a refrigerator is an appliance since it can easily be removed. Possible fixtures include cabinets, countertops, doorknobs, ceiling fans, dishwashers, ovens and stoves.

2. Contact your lender to ask about specific items. If you are unsure if an item is considered your property, ask the lender before removing it from the home. Your lender agreement may include a stipulation that states any improvements or renovations must remain with the property. If there is no agreement, you may be able to replace the original items back in the home and keep the upgraded models, if desired.

3. Consider how removing the items will affect you. If your state allows a deficiency judgment for the difference between the sale price of a home and the balance owed, it may be beneficial to you to leave the appliances. Removing the items can result in a lower sale price, which means a higher deficiency amount.

4. Take all personal property from the home. Personal property includes clothing, drapes, indoor and outdoor furniture, above-ground pools, small kitchen appliances, mirrors and other decorations. Remove all items before the sale date. After the locks are changed, you will be unable to access your items. Some lenders may even charge you a storage or removal fee for items left in the home.

References

• Rebuild; Foreclosure and Stripping Homes; June 2008
• American Financial Solutions; Stripping a Home After Foreclosure; Angelique Knapp; July 2008
• ABC News; Million-Dollar Foreclosure Theft; Mike Von Fremd; April 2009
• Broker Outpost: Taking Appliances & Fixtures After a Foreclosure
• HousingWire; Nevada Bill to Crack Down on Willful Foreclosure Damage; Jon Prior; March 2011

Resources

• U.S. Department of Housing and Urban Development: Avoiding Foreclosure