14 Sep What Happens To My Property After Foreclosure?
In Illinois, property is sold at foreclosure by one of several methods, by judicial sale in court, or by a court appointed receiver, trustee or sheriff, usually in the courthouse or by agreement of the parties. The borrower has 7 months after the lawsuit was filed or 3 months after a foreclosure judgment was entered by the court to redeem the property by paying a specified amount to the plaintiff/mortgage holder. If the property is not redeemed within the redemption period, the foreclosure sale transfers all interest in the property to the buyer.
A story from California shows what can happen after a bank takes property. Wells Fargo Bank acquired a $12 million dollar Malibu estate after the homeowners defaulted on the mortgage. Wells Fargo acquires thousands of houses through foreclosure across the country. In this case, the homeowners surrendered the property to the bank. However this house was remarkable in that it had a high value and it was located in ritzy Malibu California. That by itself might not be of interest. Let me add another twist, the neighbors complained to a local newspaper that a Wells Fargo bank executive moved into the house and entertained guests in the property. These residents wrote down license plate numbers on a car parked in the driveway and obtained the name of the bank executive from the security guards who issued a parking pass to the property occupant.
Despite the intrigue and the sleuthing, the story does not allege the bank executive did anything illegal. For its part, Wells Fargo Bank claims it is investigating the incident but reserves the right to protect the privacy of employees from public comment. UPDATE: Wells Fargo now claims to have fired this employee.
So, what does this tell you about property that is sold or surrendered through foreclosure? It says the previous owner no longer has an interest in the property and has no say in the future use of the property, regardless of the price or the location of the house.
Andy Miofsky, Esq.
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