Can I Keep Living in my Foreclosed Homes?

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Can I Keep Living in My Foreclosed Home?
A Guide to the Homeowner Facing Foreclosure
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Is the Home Foreclosure Process Finished?
The first notice from the bank that the home is
being foreclosed on doesnt mean the process is
done
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There are many different steps that must be
taken before the foreclosure is finalized
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You can generally stay in the home until the
foreclosure process has been completed
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Sometimes, banks can take months or even years to
complete the foreclosure process
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In some cases, banks do not follow through with
all of the necessary steps to finish the
foreclosure, which means you could stay
indefinitely
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Have You Received Notice the Home is Being Sold?
The final step in the process after the lender
has foreclosed on your home is a foreclosure sale
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Receiving notice that the home is going up for
auction does not mean that the house has a new
owner yet
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someone would need to buy the home in the
auction or else the bank would remain in
possession of the property
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If the bank remains in possession of the
property, the lender may not be as aggressive at
taking steps to get you out of the house
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Does the Home Have a New Owner?
If the home is actually sold to a new owner,
there is a good chance that the new owner is
going to want to move in or begin renting the
property
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The new owner will probably be aggressive in
getting you to move out, bringing a sheriff to
have you formally evicted if necessary
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It is best to start planning and to get out once
the home has been sold to a new owner so you
dont have to leave in a hurry when the sheriff
shows up at your door
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How Long Can You Stay in the Home?
The length of time you can stay in the house
depends upon how quickly the bank moves in
foreclosing on the home and selling the house
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The high number of foreclosures in recent years
has many banks overwhelmed
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which means you may be able to stay in the house
for a long time as the lender doesnt have the
manpower or time to take actions necessary to get
your home sold and get you kicked out
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Risks of Leaving The Home
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Leaving the home before you are sure the
foreclosure process has been completed is risky
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Until the bank (or new owner) formally owns the
home, you are still responsible
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This means you could be sued by the city for
failing to maintain the home or on the hook for
property taxes on the house
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Because of the risks of leaving the house, it is
best to ensure that the home is definitely
foreclosed on and to ensure that the lender owns
the home before you leave
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Risks of Staying in the Home
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Staying in the home has limited risks
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While you can be evicted from the home, you will
generally be provided with notice before this
occurs
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You may be faced with bank lenders and potential
buyers showing up at your door
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The notice of the foreclosure being made public
can put you at risk of your home being targeted
by criminals who may believe the home in
foreclosure is empty and thus a place from which
they can steal
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Benefits of Remaining in the Foreclosed Home
For many, the benefits far outweigh the risks
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You can live in the foreclosed home without
making mortgage payments, thus avoiding the need
to pay for housing
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You can save money during the time you live in
the foreclosed home that you can use as a down
payment for a rental apartment or to pay other
household expenses
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You can stay until the bank has definitely taken
ownership, thus avoiding the potential risk of
the bank leaving the property in your name (and
thus leaving you responsible for anything that
happens on the property)
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The Eviction Process
At some point, if the foreclosure is completed
and the bank takes possession, you generally will
be made to vacate the home by force if you refuse
to go
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You can be evicted from the home and have your
belongings removed from the house if you have
failed to depart and the new owners want to take
ownership of the home
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You still have certain legal rights depending
upon the circumstances- so be sure to talk to a
lawyer if you are being evicted
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