What Are Home Owners Rights During Foreclosure?

September 4th, 2009 | Tags: Foreclosure

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Once the foreclosure process is initiated against a homeowner, they won’t just get kicked out. In fact they have certain rights while the foreclosure process is still on. The lenders have to follow the legalities even when the foreclosure process is happening. You can only be removed from your home following a court order or if the house has been sold in an auction, and has been bought over by a new owner.

Laws for foreclosure and eviction differ from state to state

The foreclosure laws differ from state to state and in short, it’s usually 6 months before any such proceeding will happen. Moreover the foreclosure process begins depending on the type of loan that you have taken. For example, if you have taken a loan from a private bank, then the foreclosure proceedings will really begin after 4 months, if you have taken a FHA loan then about 5-6 months, if you have taken a VA loan then about 6-8 months. During this time, you can’t be evicted from your own home.

If however, at the auction, there are no bidders, the property becomes lender owned. The lender can get the property evicted and place the property in the market through a real estate agent.

What happens after the auction is over

After the foreclosure process is over and the home is sold to the highest bidder in the auction, you will actually become a tenant in your own home. The bidder that ahs purchased the home will have to follow the legalities before they can evict you.

When the new owner sends out the notice, it usually gives the previous homeowner 72 hours. If you don’t evict during that time, the new owner can go to court and seek eviction orders from the judge. If the judge gives those orders, then the Sheriff can physically remove you within 48 hours of that notice.

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