What happens to tenets during a foreclosure?
May 17, 2009 in
Financial and Loan Tips
In Your Face!
The owners of our house told us today that we might have to move because they are going through foreclosure. They also said something about the bank giving us money to help us move. Is this true, and how does it work?
The owners of our house told us today that we might have to move because they are going through foreclosure. They also said something about the bank giving us money to help us move. Is this true, and how does it work?
Also, how long do you think we have to stay here?
Any info would be helpful. I know we need to talk more with the owner, but this is just for now.
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8 comments
nickelrustler on May 21, 2009 at 12:37 am
you have 2 months..3 tops..take the money and get out
latin_runner963 on May 23, 2009 at 11:58 pm
nothing and since they informed you you cant sue them or take any kind of legal action and if u rent then when the house gets taken away then you’ll be put out on the streets since u dont own the house and i guess you should be looking for another place
takeme2thebnk on May 24, 2009 at 3:20 am
Foreclosures usually take 90 days, but in this market they have been taking a lot longer. The bank would give you the money necessary to move into a new place. A relocation fee. I’m not sure how much it would be. Ask your landlord how long you have to stay in the home though. He might have gone into default a long time ago, and the bank could be taking the home back soon.
onparadisebeach on May 25, 2009 at 12:02 pm
There is no law that states that the tenant must move during a foreclosure – the bank, however, usually wants the building empty. This is even true in large apartment buildings. Maybe you could negotiate with the bank to buy the house. Good luck.
Damocles on May 28, 2009 at 3:24 am
Ask them who the bank is and go talk to the bank yourself. Sometimes the bank would rather keep you there paying rent (to them) than let it sit idel while they find a buyer for it.
Although the bank is not obligated to pay you to move, sometimes they will do this. For example, if they are just going to tear the building down and put up something else, then the sooner they have you out, the sooner they can do that. There are laws about evictions – they can’t make you move for X days. But they might be willing to part with a couple thousand to get you to move out sooner (time is money).
TK on May 29, 2009 at 2:45 pm
The bank forecloses the mortgage it holds and sells the house at a public auction. The highest bidder at the auction usually has 30 days to complete the purchase, and then they recieve good title to the house.
It sounds like the bank anticipates that it will be the high bidder at the public auction, or else your landlord has has discussions with the bank about them giving the bank a Deed In Lieu of Foreclosure. In any event, the bank would prefer to re-sell the house free of any tenants. That means that they will offer you a certain amount of money to leave voluntarily, and if you don’t accept their offer then they will begin legal proceedings to evict you.
You might want to consult an attorney who has some knowledge about how much you can demand from this particular bank. A protracted legal proceeding will cost the bank time and money and delay the repair or improvement and re-sale of the house. But it may also cost you a substatial amount of attorney’s fees to defend those eviction proceedings. So you should seek a reasonable sum of money (in addition to negotiating the return of your security deposit and/or last month’s rent) that will allow you to rent a comparable apartment in the area. You should also ask for the bank to reimburse your moving expenses or pay you a fixed sum of money that you can apply against your moving expenses.
Good luck. If you feel confused or intimidated by the bank, then consult an attorney.
Hayley on May 31, 2009 at 4:58 pm
the foreclosure is public record so go to the county website to look it up.. i would start looking for a place.. but this can mean taht your payments are not being credited… and you will notget your deposit back.. try to find out the attorneys information to cover your self..
foreclosurefish_com on June 1, 2009 at 8:39 pm
You need to find out what part of the foreclosure process the house is in, and determine if there is a redemption period after the sheriff sale.
Find out from the owners if a sheriff sale has been scheduled. That will give you a good estimate of when they will no longer be the owners of the house.
Then, look up your state laws to find out if there is a redemption after the sale. If there is no redemption, then you have to move out soon after the foreclosure auction, or you will be evicted.
If there is a redemption period, you can stay living in the house until after the redemption. This is a period guaranteed by state law for homeowners to keep possession of the house and attempt to pay it off or sell it. So the bank can’t evict you until after the period is over.
In some cases, the bank can offer to give you a thousand dollars or so just to move out. It’s called a “cash for keys” deal, but the amount offered will not be very much. Banks do it as a sign of good faith, and to persuade homeowners to leave without destroying anything or stealing all of the copper pipes to sell for moving expenses, etc.
But how long you have depends on how much time has already expired and what the state foreclosure laws have to say.
Good luck.
ForeclosureFish