Foreclosure Help: What Happens After Foreclosure?

December 10, 2009 | By Foreclosure Business News In Foreclosure News |

Foreclosure Business News Editor Note: What happens after foreclosure depends on where you live and what your end goal is.

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 . . .

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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
• Tennessee
• 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.

If you are looking to Stop Foreclosure, you can fill out a short form and get solutions. Don’t be defensive - take the offense at http://www.foreclosureoffense.com.

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