If you know you're on the path to foreclosure, then you're probably on pins and needles waiting to see when someone will knock on your door to kick you out. How long can you actually stay in a home after a foreclosure? Most state laws have their own timelines, though these can often be extended or negotiated if you work through the proper legal channels.
The short answer to that question is that it can be anywhere from a few days to a few months -- it all depends on how things unfold and which state you live in, though you can do your best to influence things.
Let's backtrack a bit -- after your first missed mortgage, you'll start getting calls and letters from your bank. After about three months, the bank activates its foreclosure department to handle the nuts and bolts of the actual process. From this point, you've usually got about one to three months (could be more) until the actual scheduled auction. Once the auction hits and the property reverts back to the bank (or someone pays cash and buys the property), you're pretty much out of luck. So the key is to be pro-active and negotiate before the auction.
The earlier, the better. If foreclosure is inevitable, start talking with your bank within a few months of your first missed mortgage. You can find a foreclosure attorney to help you negotiate. The important thing it be polite and plead your hardship case. From here, you can look at a planned move-out date that is mutually agreed upon, even if it's after the foreclosure notice has been served. Most banks will want to work with you because a good relationship with the bank increases the chances that you'll leave the home in good condition. This can also lead to the eventual Cash for Keys deal, something that we'll document in our next post.
Israel Gonzalez
Real Estate Broker
831-636-8858
www.bestreohomes.com
Click here to contact me by email.
The views published here are the opinions of the writer and are not a substitute for legal counsel.