Your home is in foreclosure, and you know you can’t catch up, defend the foreclosure, or do anything else to save the house.
But once the gavel falls at the auction, will you need to leave? Or can you stay in your home even after the foreclosure is finished?
In most cases, it is usually the best idea to be moved out of the home a couple of days before the auction. This can save you and your family unneeded emotional strain and a possibly embarrassing situation.
But let’s say you want to stick around. You need to know that the new owner may start an eviction action against you – after all, once the foreclosure is finished, you’re a tenant (and possibly an unwelcome one).
In some cases, however, the new owner will be the same mortgage bank that foreclosed on you in the first place. These days, banks are taking back houses in record numbers – and if they take yours back, they’re going to need someone to make sure the property doesn’t fall into disrepair. Eventually the real estate market will bounce back and the lender will want to sell the house; chances are pretty good that a home in good repair will fetch a better price.
In other cases, the new owner will be a real estate investor out to make a few dollars. There may be an option to rent from the new owner.
Finally, there’s a chance that whoever the new owner is, they will want you out without the need for costly litigation. Some lenders and investors are known to offer “cash for keys,” which involves paying you to move out in a timely fashion. You may be able to negotiate with the new owner to stay in the home for a certain period of time in exchange for leaving peacefully.
The upshot is this – even when you lose your home to foreclosure, you may be able to avoid having your stuff thrown to the front lawn by communicating with the new owners. Speak up and don’t be afraid to deal with the situation.
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Last modified: October 28, 2008