How Much Time to Live in a House in Foreclosure
When a homeowner is unable to make mortgage payments on a home, the mortgage lender may choose to foreclose. Foreclosure is the legal means by which mortgage lenders attempt to regain possession of a property used as collateral for a defaulted loan in an effort to sell it. The timeline of the foreclosure process can vary, depending on the lender and the state in which the property is located.
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Overall Timeline
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According to the U.S. Department of Housing and Urban Development, mortgage companies generally begin foreclosure proceedings within three to six months after the first missed mortgage payment. However, this does not necessarily mean that a home will be sold through foreclosure in three to six months. In fact, according a study cited on bankrate.com by LPS Applied Analytics, loans in the foreclosure process have been delinquent for a year on average. This means that many homeowners have been able to remain in their homes for a year or more after missing their first mortgage payment.
The Process
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Once a mortgage loan becomes delinquent, the mortgage lender will make an attempt to contact the homeowner to determine the status of their situation. If the account continues to remain delinquent, there have been no modifications or changes made to the existing loan or the home has been sold by the homeowner, the lender will then accelerate the process by initiating the legal foreclosure hearing. During the hearing, your lender will request that a judge approve its request to proceed with the foreclosure sale on your property.
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Foreclosure Sale
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The mortgage lender will attempt to sell your home, usually through an auction. If the home does not sell, the lender may take ownership of the property. Once the property has been sold through the foreclosure process or the lender takes possession of the property, the homeowner is no longer the legal owner of the property and must vacate the premises. If the owner does not voluntarily vacate the premises, the mortgage lender or the new owner of the property may initiate eviction proceedings to force you to leave the home.
Eviction
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The final eviction process can move ahead rather quickly -- in as little as a few days to a few weeks, depending on where you live. After the foreclosure sale, the new owner may demand that you vacate the property through serving or posting a Notice to Quit. The notice to quit is the legal notice that informs you that if you do not vacate the home within a specific period, commonly three days, eviction proceedings will begin. If you do not leave within the notice to quit period, the new owner can then petition a court for permission to have you removed from the property. A local law enforcement authority will place a notice of eviction in a prominent place, informing you of the date when you must be out of the home.
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