How Long Do You Have to Vacate After a Foreclosure?
Going through a foreclosure is a stressful process that can take many months. While dealing with lenders and attorneys, the homeowner also faces the prospect of moving. It is important to understand the timeline of the foreclosure process to ensure a timely move that is advantageous for the homeowner.
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Foreclosure
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By simple definition, a foreclosure is a process by which a lender takes possession of a property in order to satisfy a debt, usually a mortgage. Foreclosures are long, tedious legal proceedings that can take many months to complete. During the process, the homeowner has the right to remain in the home. The homeowner can take advantage of this time to save funds for his next dwelling, negotiate a loan modification (if desired) or perhaps sell the home. The state of residence determines the timing of the foreclosure and other variables, such as judicial or non-judicial foreclosures. Judicial foreclosures require a judge's signature to be executed, which can add more time for the homeowner to remain in the home.
Timeline
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Missing a mortgage payment starts the process toward foreclosure. The bank usually calls or sends a letter after the first missed payment. By month two, if a payment has not been received then the bank will step up the efforts to contact the homeowner. During this time, the homeowner may contact a housing counselor who may be able to negotiate with the bank for loan modification or even a forbearance in the event of a job loss. By month three, if there have been no payments, the bank will issue a demand letter, also called a notice to accelerate. This letter gives the homeowner 30 days to get her payments current. Nonpayment results in the start of legal proceedings.
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Date of Sale
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The lender's attorney files a foreclosure action if the homeowner resides in a judicial foreclosure state. After the filing, the homeowner has 20 to 30 days to respond. If the homeowner does not contest, then the sale will go through, usually in a month after the order is issued. In an nonjudicial state, the homeowner is given notice of at least 30 days before the public sale. (A few states require only 15 days notice.) During this time, a homeowner can still reclaim his home by bringing all payments current and paying the lender's attorney fees. The timing of the period from issuing the demand letter to the public sale of the home varies from state to state. It also depends on the foreclosure backlog in that area. This period can last for several months, or as few as two to three months.
Eviction
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If the home is sold during the public sale and the deed transferred over, then the homeowner officially becomes a tenant. Written notice arrives days after the sale instructing the homeowner to vacate the property. The notice dictates the number of days that you have to move, but the typical amount of time is between five and 30 days. If you do not leave within that time time frame, a court order may be issued to have you physically removed by a sheriff. Eviction court orders can take several months to execute, but choosing this route can jeopardize your chances of leasing or renting a home in the future.
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