December 30, 2009 | By FBN Site Editor In Foreclosure News | Comments Off on Florida Foreclosures: Good News for Homeowners — Court Requires Mediation before Foreclosure
According to the 12/29/09 online edition of the Miami Herald, foreclosing on a homeowner just got a little more complicated and costly for lenders, ie:
Florida’s troubled homeowners and their lenders will increasingly meet at the bargaining table under a state supreme court order issued today that aims to reduce a foreclosure overload. . . . [a] statewide program . . . requires mediation on all homesteaded properties before a foreclosure hearing is held.
What the New Florida Foreclosure Law Means for Homeowners
Basically that they get another shot at the apple, for it ensures that they will a chance to meet with their lender to discuss whether a loan modification or short sale is an option, instead of the lender moving forward with a foreclosure.
Other Particulars of this New FloridaForeclosure Law
Lenders have to pay the mediation fees — which can run as high as $750.
Homeowners can refuse mediation if they wish, or work out other options with their lender, but every residential homesteaded property in foreclosure will be referred to this process as a matter of course.
Lawmakers hoping this law will help reduce the thousands of foreclosure cases clogging the Florida system, a situation that’s been called “horrifying” by Florida’s Task Force on Residential Mortgage Foreclosure Cases.
According to an AP article, Foreclosure backlog estimated at 1.7M:
About 1.7 million homeowners were on the verge of foreclosure in the fall, a looming “shadow inventory” of homes that will be put up for sale in the coming years and weigh down prices, . . . The number, up from 1.1 million a year earlier, is likely to keep rising through the middle of next year or later.
While home prices have been creeping up (“creeping” being the key word here), a huge influx of foreclosed properties could send home prices plummeting again. This means the housing market could take even longer to recover.
As a realtor in the aforementioned article says, “”We’ve been in recovery mode for most of the year. . . . Any house priced under $225,000 will be affected by a large increase in foreclosures in this market.”
Add to this the “jobless economic recovery” and what you have is a financial mess that’s not going anywhere soon.
December 17, 2009 | By FBN Site Editor In Foreclosure News | Comments Off on Foreclosure News of the Day: Citigroup Suspending Foreclosures . . .
At least for the holiday season.
The giant lender is playing Santa. According to the AP article, Citi to suspend foreclosures for 30 days, it will “suspend foreclosures and evictions for 30 days in a temporary break for about 4,000 borrowers during the holiday season.”
Saying that it wanted to “relieve stress” for homeowners so that they can enjoy the holidays, the lender’s notice means that it will stop foreclosure sales from going through, as well as put a halt to evictions. The expiration date for both is January 17th.
Suspending Foreclosures: And the Grinch Is Still in the House . . .
FYI, if you make a mortgage payment to Citigroup — but your mortgage is actually owned by another lender — unfortunately this good news does not apply to you.
December 16, 2009 | By FBN Site Editor In Foreclosure Buying Advice | Comments Off on Foreclosure Investing: What RE Investors Need to Know About Buying Foreclosed Properties with Right of Redemption Periods
If you’re thinking of getting your piece of the real estate pie by doing some foreclosure investing, you need to be very careful. For, while you can make a lot of money investing in foreclosures, there are a lot of pitfalls too.
Here, we’re going to discuss foreclosure investing as it relates to buying properties that have right of redemption periods.
Foreclosure Investing: What are Right of Redemption Laws
Now that you know what right of redemption laws are, it should be pretty obvious that when doing foreclosure investing, you have to be extremely careful because you could be out an investment – and plenty of money – before you know it.
Foreclosure Investing: Property Investors Rights and Realities When Buying Right of Redemption Properties
1. Know the Redemption Period in the Jurisdiction in Which You’re Buying: This period is set by state law – and it varies widely. It can be anywhere from a day on up to two years (Tennessee).
If the redemption period ends by the time you purchase the property, then great, no worries. BUT, if the period extends beyond the sale date – and many do – then you need to know the following.
2. Don’t Fix Up Property Until Redemption Period is Over: Why? Because you can lose this investment capital. How?
Owners who exercise their right of redemption are not required to pay back any monies an investor has spent in fixing up the property. They are only required to pay mortgage arrears, taxes and fees the lender incurred in selling the property.
So, if you buy purchase a foreclosed property and fixed it up before the redemption period is over AND the owner hits the jackpot or in some other way comes up with funds to purchase the property back, any monies you spent in fixing, repairing and upgrading the property is your loss.
3. Buy Redemption Rights from Owner Where Possible: Many new property investors who are just getting into “foreclosure investing” aren’t aware that they can buy the redemption rights from an owner . . . and usually for only a nominal amount (eg, a few thousand dollars).
Usually, a homeowner facing foreclosure will do this because they’re going to lose the property anyway, and they don’t see a way to redeem it in a year or two. Face it, most people’s financial situation just doesn’t turn around that quick.
So, selling those rights gives them some ready cash.
4. Buy Foreclosed Properties via Redemption Rights: What we mean by this is, buy the rights from the homeowner first, then use those redemption rights to buy the property after it has been foreclosed on. This can save you a lot of money as an investor.
To explain, let’s pretend you want to buy a property that has a fair market value of $100,000. There’s a first mortgage on it for $50,000; a second one for $40,000; and a contractor’s lien for $10,000.
The lender with the first mortgage (the one for $50,000) is the one who is foreclosing. This lender will get money from the foreclosure sale. Whether the property sells for enough will determine whether the second mortgage lender or the mechanic’s lien is wiped out.
Eg, i it sells for $50,000 or less, the second lender and the mechanic lien holder won’t get any funds.
Now comes the interesting part . . .
If you hold the redemption rights, you can swoop in after the home is sold in foreclosure and pay the redemption price ($50,000), plus any late fees, interest, etc. Even if these added another $20,000 to the price, you will still have bought a property with $30,000 in equity in it (remember, the fair market value is $100,000).
5. Line Up Your Financing: Have all of your financial ducks in a row if you plan to buy foreclosed properties using this method, or you could lose out on a good deal. Particularly in these foreclosure-ridden times, many sellers (especially if they’re lenders) want cold, hard cash.
6. Resolve Title Issues: There can be more than one party with redemption rights on a property. So, make sure the title is completely clear.
December 15, 2009 | By FBN Site Editor In Foreclosure News | Comments Off on Right of Redemption Laws: How to Get Your Home Back – Even After It’s Sold as a Foreclosure
Did you know that, depending on where you live, you have a right to get your home back – even if it’s been sold in a foreclosure auction? You can. It’s known as the right of redemption law. In yesterday’s post entitled, Stop Foreclosure Help: What Happens When You Stop Paying Your Mortgage, we touched on it a little bit. Today, we explore this real estate law a bit further.
What is a Right of Redemption Law?
In the home foreclosure process, there is a period of time where the former homeowner can buy back their property from the person who bought it at auction. This period is known as the “redemption” period.
7 Things You Must Know About Right of Redemption Laws
i) Who Do Rights of Redemption Laws Apply To: When most think of redemption rights, they usually think of the homeowner who is being foreclosed on. Of course, redemption rights belong to them. However, they can also belong to any other persons or entities with a legal interest in a property, eg, the creditors of the borrower.
ii) Time Period to Buy Back Property: Right of Redemption laws vary from state to state. They can be as little as a few days on up to two years (Tennessee). Most states’ redemptive periods fall in the six months to one-year category.
iii) Specifics Vary Widely: Also, right of redemption laws have various quirks from state to state. For example:
The state of Illinois’ redemption period is seven months – from the time the foreclosure notice is filed, OR three months from the time a final foreclosure judgment is entered.
In California, the period of redemption is 3 months — if the property is sold for enough to pay off the mortgage. If the property doesn’t bring in enough to pay off the mortgage, the redemption period is 12 months.
And in Florida, the redemptive period ends once the house is sold at foreclosure. HOWEVER, it a court is allowed to “review the sale to ensure that a fair price was paid for the property.” And get this, there is no definitive time limit for a court review. Although, it usually takes place in 10 days. Ironically, this is just enough time to file the certificate of sale and for title to pass.
So it is extremely important to know right of redemption laws – as they apply in your jurisdiction. There is no one size fits all when it comes to this real estate law.
iv) Costs to Buy Back Property: Under Right of Redemption laws, the former homeowner (or other person/entity with an interest in the property) must pay back any outstanding principal due, plus interest and all other costs the lender incurred in selling the property.
v) Selling of Rights: An owner can sell his Right of Redemption to another party. For example, if I own a home, instead of exercising my right to buy it back, I can sell it to another party. If you buy my house at foreclosure, the party I sold my rights (of redemption) to can then exercise their right to buy back the property – the same as if I were the one exercising the right.
vi) Non-Judicial Foreclosure: All sales are final in non-judicial foreclosures; there is no right of redemption period. Non-judicial foreclosures take place in states where homeowners sign a Deed of Trust when the buy a home, NOT a Mortgage. For more on this, reference yesterday’s post on what happens when you stop paying your mortgage.
vii) Purchasing Foreclosed Homes:In states that have redemption laws, it can make buying foreclosures a sticky process for anyone who wants to purchase a property via this route because you don’t have clear title until the right of redemption period has passed.
On the other hand though, you as an investor can buy the redemption rights to a property, leaving you in the cat bird’s seat. So, it works both ways. In tomorrow’s post, we’ll discuss Right of Redemption Laws as they apply to real estate investors.
Facing a “Redemption Foreclosure” Process? Don’t be Bullied
Even though foreclosure laws vary by state, in most cases, a homeowner has a chance to stop the foreclosure process right up to the time of the sale. It’s important to keep this in mind because some lenders act “bullish”; using tactics to frighten buyers once they are behind.
A common tactic is to tell a homeowner that once they have defaulted, the entire amount owned on their mortgage is due. And while this is technically true, it is rarely enforced by lenders. In these times, it’s not uncommon for lenders to allow you to work out another plan, eg, a mortgage modification, give you a forbearance, etc.
Remember, as we discussed in this post on how to stop foreclosure, lenders don’t want your home. They are much better with you staying put.
List of States with Right of Redemption Laws
**Connecticut: Based on court decree
**Florida: 1 day or less; immediately upon sale – with judicial review
**Illinois: 3 months
**New Jersey:10 days
**New Mexico:30 days
**North Dakota:6 months to 1 year
**South Dakota:30 days or more
**Tennessee: Up to 2 years, unless waived at sale of property
**Vermont:6 months to 1 year
**Wyoming: 30 days or more
December 15, 2009 | By FBN Site Editor In Foreclosure Biz Tips & Advice | Comments Off on Foreclosure Cleaning: Things to Look Out For When You Receive a Foreclosure Cleanup Work Order
In your foreclosure cleanup business, you will work with many types of clients. Some will be larger preservation companies. Many larger property preservation companies will send out “work orders” to smaller foreclosure companies in order to have work completed on foreclosed homes. The work orders will most often arrive as faxes or as email attachments to the smaller company.
The work orders should have the primary contractor’s name and contact info, the property’s address, and specific job instructions, at minimum.
MORE THAN ONE AT A TIME. It is not uncommon for a small company to receive four to six work orders at one time. Most small companies will simply be happy to start getting work orders in numbers, and, unfortunately, they will dive into doing the work before dissecting the work orders carefully.
CAUTION. Dissect each and every work order carefully before doing anything. Stop, read, re-read and query. First, don’t assume that you have the “work” because you get the “work order.”
Call the property preservation company directly to verify they are indeed sending your company the work orders for completion. Develop a phone rapport with a specific person (i.e., the field services coordinator or vendor procurement manager) at the company so you can work out the details of the work orders.
EVERY DETAIL. Remember, your company is getting ready to spend time and resources to get the job done, so you want to make sure you understand every detail. It will benefit your company in the long run; and theirs, too.
DON’T ASSUME. If you are unsure of what the primary contractor is asking you to do, simply ask. Don’t assume. It will cost you dearly in the end if you do.
Further, if some wording in the work order is unfamiliar to you, ask them to clarify that portion. Don’t try to be something you’re not or you may wind up losing money on the job.
SAMPLE WORDING. Here is sample verbiage from a work order: “RUSH ORDER: Complete initial yard maintenance if within allowable. Bid if over allowable and provide ample photos to obtain bid approval.”
ALLOWABLE? Notice the word “allowable.” “Allowable” means “within their company’s pricing guidelines,” or, “based on the amount they will pay your company for the portion of the job outlined.”
If you see the word “allowable,” that means the company has its own set prices from which they work. How would you know what a company’s allowable expenditures are unless you have their pricing guidelines on hand? Ask the property preservation company for their pricing table, or bid chart, or pricing spreadsheet, so you can see if you can actually complete the job and make a profit.
IT’S OKAY TO SAY NO! Some work orders you may actually have to decline because there may not be enough room for profit. Remember, you’re in business to make money.
PRICING: Note that in working with some clients and companies, you will be able to set your own foreclosure cleanup prices. But many property preservation companies will follow HUD’s pricing guidelines when coming up with their allowable fees — but often only as a gauge in setting their own prices. And their prices will depend on where “they” are on the totem pole in getting paid. We discuss “totem pole” in great detail in the Foreclosure Cleanup Pricing ebook.
OVER THE ALLOWABLE AMOUNT. Notice the work order verbiage above states the foreclosure cleanup company should “bid” if they believe the cost to complete the job is over the “allowable.” This means that if the property preservation company’s pricing is too low for your company to perform the job and make a profit, then you should simply place a written bid on the job. In this case, you are not working this portion of the job; you are simply bidding on it.
ATTACHING PHOTOS TO BIDS. Many companies will ask for photos with the bids you may ultimately place on a certain part of a work order. Use your judgment on this. In some scenarios, you may want to simply submit a written bid without the photos because you don’t want to become the “unpaid” eyes for their properties by submitting bids and never hearing back. But, if there is extensive damage that you want to document pictorially, snap the shots and send them over with your bid.
VERBAL AGREEMENTS? Once you establish a phone rapport with your contact at the property preservation company as it relates to the work order, it will not be uncommon for you to notice other damage at the property for which you may want to seek approval to complete. The person on the phone may say, “Sure, go ahead and do this or that.” Don’t. Get the new duties approved in writing, first, or you may have a hard time getting paid for it because it wasn’t on the work order.
REMEMBER THESE POINTS. Remember, everything is negotiable in foreclosure cleanup. But keep in mind the following when you start getting work orders: make sure the work order is intended for your company; find out what the company’s allowable amounts are, if applicable; you don’t have to complete every work order you receive; you should read, re-read and ask questions; and, you should put bids in writing and get approval in writing so you don’t have a problem getting paid for work completed.
Good luck, and continued success out there on the front lines!
December 14, 2009 | By FBN Site Editor In Foreclosure Biz Tips & Advice | Comments Off on Stop Foreclosure Help: What Happens When You Stop Paying Your Mortgage
Unfortunately, it’s not a surprise anymore — more and more Americans are unable to pay their mortgages. Subprime, interest-only loans; loans resetting to higher interest rates, which jacks up the payments; depleted savings; high amounts of personal debt; and the state of the economy have all converged to make foreclosure a real possibility that many homeowners are facing for the first time in their lives.
If you find yourself in this situation, you’re probably afraid and confused about where to get straight answers, or “stop foreclosure help.” Here we’ll explain exactly what happens when you stop paying your mortgage. That way, you can start preparing for the next phase in the process.
Stop Foreclosure Help: The Number One Thing to Remember
What is this? Keep in mind that foreclosure is a process; a process that takes time. How long depends largely on where you live and your financial situation. See thistimeline for foreclosure in all 50 states to get an idea.
Your mortgage is a debt that you owe. Lenders collateralize their home loans in a couple of ways – via trustee’s deed or via mortgage. When you default on your home loan, it all depends on how the lender has collateralized the loan as to what type of action they will take.
A deed is the written document which transfers title (ownership) or an interest in real property to another person. A trustee’s deed is a deed to be executed by a person serving as a trustee in their appointed capacity. A trustee’s deed is often used, for example, by a trustee in bankruptcy to sell real property of the debtor. [Source: definitions.uslegal.com]
A deed of trust involves three parties – the borrower, the lender, and the trustee. The trustee is a neutral third party that holds the actual title to a property until the debt is repaid in full. Then, the deed is conveyed to you – homeowner. Who is the actual trustee? This varies by state; eg, it can be an attorney or a title company.
How the Home Foreclosure Process Proceeds Under a Trustees Deed State
When you stop paying your mortgage – even one missed payment – you are in default and the lender can technically start foreclosure proceedings. Although, it usually doesn’t happen this way. Under a trustees deed, there are a couple of periods that start the beginning of the foreclosure process.
(i) Notice of Default: One is the aforementioned default period. Although you are technically in default after one missed payment, most lenders won’t start any proceedings until you are 90 days late. Then, the trustee can file what’s known as a Notice of Default (NOD).
This notice lets you know that if you don’t become current with your mortgage in a certain period of time, the lender is going to start the formal foreclosure process.
(ii) Notice of Sale: The second period under a trustees deed where you go into foreclosure is the notice of sale. This is more serious, for this is when the lender hires a trustee to actually set a sale date for your home.
If the property does go to auction and is sold, there is no right of redemption. The sale is final. At auction, what typically happens if the property doesn’t bring enough to cover what’s owed on the mortgage, the bank buys the home back in what’s called a reserve bid. This reserve bid is always the amount owed on the property.
What is a Mortgage?
When you get a home loan, you sign a document promising to repay the loan. Depending on where you live, this document is either a deed of trust or a mortgage. What’s the difference when it comes to foreclosure?
Unlike a trustees deed, a mortgage involves only two parties – the borrower and the lender. When a borrower doesn’t pay the mortgage, the lender has the power to foreclosure, ie, sell the property. However, the lender has to go to court to start the foreclosure process. This is called a judicial foreclosure.
Stop Foreclosure Help: 2 Big Differences Between a Trustees Deeds State and a Mortgage State
Deeds of trust are non-judicial foreclosures. This means the lender does not have to go through the court system to foreclosure. And, this is one of the big differences between a mortgage state and a trustees deed state.
When a deed of trust is involved, the foreclosure process is often quicker, easier and less expensive than when a mortgage is the security instrument.
The second big difference is what’s known as the right of redemption period. Only mortgage states have these; trustees deeds states do not. Basically, this law allows homeowners “reasonable opportunity to reacquire the property, provided certain guidelines are followed.” This period ranges anywhere from typically 90 days on up to a year; it all depends on what state you reside in and how much the home is sold for.
For example, in California, the period of redemption is 3 months — if the property is sold for enough to pay off the mortgage. If the property doesn’t bring in enough to pay off the mortgage, the redemption period is 12 months.
Stop Foreclosure Advice: How the Home Foreclosure Process Proceeds In a Mortgage State
Basically, the process proceeds the same as explained under the trustees deed states, but with one exception — the right of redemption period, as explained just above.
Stopping Foreclosure: A Timeline — Why It Can Take 5 Months to a Year or More
The foreclosure process can take anywhere from 30 days to a year or more once you break it down, ie:
90 Days. Usually, you get this much time to miss payments before a lender will take action.
30-120 Days: Notice of Default Mailed. This gives homeowners another 30-120 days to bring their mortgage current, or work out some other plan, eg, mortgage modification, forbearance agreement, etc.
30-180+ Days: Notice of Sale. Lender notifies homeowner that a sale date has been set.
If you add all this time up, it’s anywhere from five months to a year or more before you have to vacate your property.
If your financial situation is temporary, this can be enough time to get back on your feet and stop the foreclosure process.
At every stage of the foreclosure process — whether the collateralized instrument is a mortgage or a trustees deed — the homeowner has a chance to save their home. So keep this piece of advice in mind when you are trying to stop foreclosure.
Tomorrow’s Post on Stopping Foreclosure
In tomorrow’s post, we’ll talk more about the Right of Redemption – another tool homeowners are unaware of that they can use to stop foreclosure.
Has a past bankruptcy, foreclosure, or other bad credit challenge stopped you from applying for a home loan? Need to know how to qualify for a mortgage in spite of these credit challenges? Now you can get the mortgage qualification info you need.
December 11, 2009 | By FBN Site Editor In Foreclosure News | Comments Off on Stop Foreclosure: How to Ready Your Home for a Fast (Short) Sale
If you’re a struggling homeowner facing foreclosure, one of the options available to you is the good ole short sale. But, as with any home sale, there are some things you must do to ready your home for this type of sale. They can make the difference between selling your home quickly, or not selling it at all.
Before we discuss what they are, let’s briefly discuss what a short sale is.
A short sale is when a house is sold for less than what is owed on the mortgage. In today’s foreclosure crisis, more and more homeowners are using this method to get out from under their mortgage – for a host of reasons.
If you do a short sale, be sure to get your mortgage holder to accept a short sale “with no recourse”. This simply means that the lender agrees NOT to come after you for the balance due (the short; the deficiency). Whether or not your mortgage holder agrees to this will depend a lot on your financial circumstances and who the lender is.
Whether you’re doing a short sale or not, here are five things you can do to get your home ready for a quick sale if you’re trying to stop a foreclosure.
Stop Foreclosure: 5 Things You Should Do to Get Your Home Ready for a Fast (Short) Sale
Here are the five “de’s” of preparing your home for a quick (short) sale.
I. Detach Emotionally: This is probably the hardest thing you will have to do, especially if you don’t want to leave your home. But remember, this is necessary to do what you have to do so you can move on with the rest of your life.
A home is made up of the people who inhabit it; not the bricks and mortar it’s made out of. So, as long as your family remains intact, “home” will always be with you.
Lisa says that prospective buyers have to image themselves living in the space. It’s much easier to do this when your pictures, knickknacks and other personal items are not crowding the walls, tables and mantles.
III. Declutter: If you’ve ever watched an episode of A&E’s “Sell This House,” one of the first things they do is clear out a space. They declutter it, then refill it only with essential elements.
Most people don’t realize how much stuff they’ve accumulated until they get ready to move. Clutter, even in a clean house, can make it appear dirty, small and all-around uninviting. A decluttered spaces says, “new”, “clean”, “modern”, “crisp”, “open” . . . BUY ME!
IV. Decrease the Price: . . . . if you have too.
If you’re doing a short sale, you are already selling for less than what is owed. But, you may have to decrease even a short sale price, especially in today’s market. Be prepared.
Remember, a house is only worth what someone else is willing to pay for it. This is where working with a realtor can really pay off. They will pull comps and price your home accordingly; that way there’s less chance of you overpricing it.
V. Deodorize: If you’re a smoker or you live with pets, it’s likely that you don’t even notice the odor anymore. But odors live in carpets, curtains, bed covers, slip covers, etc. And, a prospective buyer walking into your home WILL notice.
Again, if you’ve ever watched an episode of “Sell This House” or any other home-selling program, prospective buyers are notorious for commenting on things like “that awful pet smell,” or “obviously, they’re smokers,” etc. So deodorize.
Deodorizing can be as easy as giving a home a good cleaning and lighting some scented candles. Or, it can be more involved, eg, having to paint; or throw out and/or recover smelly, upholstered furniture. To repeat, if you’re working with a realtor, they will make you aware of what you need to do . . . right down to cleaning and deodorizing.
If you do these five things, you will be well on your way to selling your house, stopping foreclosure and getting on the road to a new life.
Learn the tax consequences of doing a short sale in the Suze Orman video below.
From The Atlantic: 1% Success Rate For Obama Administration Mortgage Modification Program
Out of over 3 million requests sent to home loan borrowers, just over 31,000 (31,382 to be exact) mortgage modifications have been made permanent.
Nationally, home foreclosures decreased by 8% in November.
The House is actively considering a law that would give help to homeowners who are underwater on their homes (owe more on their mortgage than their homes are worth on the open market now); the law would allow bankruptcy judges to “cram down” mortgage balances.
Do You Want Your House Back? If you want to get your house back — even after it has been sold at auction — you will still have some time to do that if you live in a state with a “Redemption Period” (discussed in the article below).
Walk Away Without Owing Any Money: If you want to walk away from your mortgage without the bank being able to come after you for monies due after the sale of your home, then you need to check and see if you live in a state that has “anti-deficiency” legislation. In essence, these are laws that protect homeowners from being sued for the balanced owed on a mortgage if it sells for less than the house is worth.
Note: Home must be a primary residence; not an investment property. Other rules and guidelines apply, so consult a home foreclosure expert to find out the law as it applies to you in your jurisdiction.
Now, on to today’s main article . . .
What Happens After Foreclosure
What happens after foreclosure depends on whether you live in a state that has a Redemption Period.
This is the time after the house has been auctioned to the highest bidder that the homeowner has to buy it back for the auction price. The time varies by state. In some places, it is as little as 3 days. In other states, it is a full year.
If your state has a Redemption Period, you will be able to use the time to raise the money to buy back the home. You may also be able to stay in the home for the entire length of the Period without making any payments.
The states with Redemption Periods are:
• Alabama – 1 year
• Alaska – 1 year
• Arkansas – 1 year
• California – 1 year
• Conneticut (based on court decree)
• Idaho – 1 year
• Illinois – 3 months
• Iowa – 20 days
• Kansas – 1 year
• Kentucky – 1 year
• Maine – 90 days
• Michigan – 30-36 days
• Minnesota – 6 months
• Mississippi – 30 days
• Missouri – 1 year
• New Jersey – 10 days
• New Mexico – 30 days
• North Dakota – 6 months to 1 year depending on circumstances
• Oregon – 6 months
• South Dakota – 30 days or more
• Vermont – 6 months to 1 year
• Wisconsin – 1 year
• Wyoming 30 days or more
So, what happens after foreclosure if you live in a state that has such a policy is that you have some time to buy back the property.
If you do not live in a Redemption Period state, or if it has expired, what happens after foreclosure is that you will be forced from your home.
Sometimes, you can get the purchaser to give you “key money” to leave the premises quickly and to leave the property in good condition. In many cases, ex-homeowners destroy the property before they leave. The buyer knows it is worth their while to induce you to leave nicely.
If you do not leave, then the buyer can bring an eviction notice against you. When the occupant is a foreclosed homeowner, generally they only have 3 days after an eviction notice for you to leave.
In this case, you will have an eviction as well as a foreclosure on your record. This makes it extremely difficult to rent after you lose your home.
So, what happens after foreclosure is that you may or may not have a Redemption Period. Then you will be forced to leave the home.