When you get a foreclosure notice, you’ll probably wonder how long you’ll be able to stay in your home. The quick answer is that you have a legal right to live in your home until the foreclosing party (the "lender") completes all foreclosure procedures and sells the home. The process will likely take at least several months, longer in states with drawn-out foreclosure timelines, with the exact amount of time depending on the type of foreclosure proceeding your lender chooses and how fast the process moves.
You might be able to stay in the home even after the foreclosure sale date if your state provides a post-sale redemption period or if your local court must ratify (approve) the foreclosure sale before you’re required to leave.
However, if you don’t move after the sale occurs or the extra time elapses, you’ll be evicted.
How Foreclosures Work
Missing a payment doesn't give your lender the right to start a foreclosure immediately. Generally, after you fall delinquent on the loan payments, federal law requires the lender to wait until you're 120 days overdue before beginning foreclosure proceedings.
Once the 120-day period elapses, the lender can begin the judicial foreclosure process or, if your state allows for it, initiate a nonjudicial foreclosure. At the end of the process, your home is sold at a foreclosure sale, typically a public auction.
The process the lender chooses will depend primarily on state law, though it could depend on other factors as well, like title (ownership) issues or the ability to get a deficiency judgment against you for the difference between the sale price and the amount you owe. Either way, you can continue to live in the home during the entire process.
The Foreclosure Sale
You remain the home's legal owner until the property title (ownership) transfers to someone else following a foreclosure sale.
Depending on your state laws, you might get extra time to stay in the home even after a foreclosure sale. For instance, if your state requires ratification (confirmation) of the sale by the court or allows the homeowner to stay in the home through a redemption period, you won’t have to move immediately.
What Is a Redemption Period After a Foreclosure Sale Date?
In some states, you’re allowed to buy back your house after the foreclosure sale. The extra time you have to reclaim (or “redeem”) your home is called the “redemption period.”
To redeem, the foreclosed homeowner must either reimburse the new purchaser for the amount paid at the sale or repay the total mortgage debt to redeem the property. If, however, the foreclosed homeowner doesn't redeem the home, the person or entity that bought it remains the new owner after the redemption period expires.
The length of the redemption period varies from state to state, and depending on state law, you might get the right to live in the home during this time. In Michigan, for example, foreclosed homeowners are usually entitled to a six-month redemption period after the sale and can remain in the home, subject to some exceptions. North Dakota law, similarly, allows the homeowner to live in the property during the redemption period, which is usually 60 days.
Not all states allow the homeowner to live in the home until the redemption period expires. To find out about the laws of your state, contact a local attorney.
After the Foreclosure: Eviction
At some point, the time you can stay in the house will end. But the new owner can't simply throw you and your belongings out. Instead, the new owner must take steps to remove you using an eviction process. Exactly how long an eviction will take varies from state to state.
Two in One
In some states, the lender includes an eviction as part of a judicial foreclosure. After the foreclosure sale, the lender asks the court for a “writ of possession” or “writ of assistance,” a court order instructing the sheriff to remove the foreclosed homeowner from the property.
Usually, the sheriff then posts a notice on the home’s front door warning that the residents have 24 hours to vacate the premises. If the house isn’t empty by the deadline, the sheriff’s crew may remove the foreclosed homeowner and all belongings from the property.
Separate Lawsuit
In other states, after a nonjudicial foreclosure, the lender has to file an eviction lawsuit to evict the foreclosed homeowner from the property. Before filing the suit, the lender typically has to give notice, which is sometimes called a “notice to quit.” The notice to quit gives the foreclosed homeowner a specific amount of time, like three days under California law, to leave the home. If the foreclosed owner doesn’t leave, the lender files an eviction lawsuit.
An eviction suit often takes several months, giving a foreclosed homeowner some additional time in the house. But it’s generally a good idea to leave the property before the time given in the notice to quit expires, before a formal eviction action.
A foreclosed homeowner already has bad credit as a result of a foreclosure, and the addition of an eviction to the former homeowner’s public record compounds the harm. Having both a foreclosure and an eviction on one’s record can make it hard to find a new place to live, especially for someone looking to rent. Many landlords have access to private databases that show whether a potential tenant has been through a previous eviction lawsuit. That fact, more than any others, could lead a potential landlord to reject your application for a lease or rental agreement.
Hiring a Lawyer
Foreclosure law is complex and varies widely from state to state. To learn about the foreclosure laws in your state, contact a foreclosure attorney. You can learn more about when to seek counsel by reading When Should I Hire a Foreclosure Attorney?