Last night I received a call from a young man who is facing foreclosure. The foreclosure sale is this week. He asked a great question so I thought I would share.
The caller wants to know if he has to be moved out of his home before the sale. If you have received a Notice of Trustee's Sale or Notice of Default, the trustee should be named in the document. You will want to attempt to contact the trustee to get their specific instructions.
There is not a simple, quick answer to this. If the home is sold at auction to an investor, the investor might be interested in allowing the homeowner to stay in the home and rent from the new owner. This can be a great situation for the investor because they already have a tenant in place.
If the home is offered at auction and no one buys it, it becomes Real Estate Owned (REO). REO's are bank owned properties. Typically the bank will contract a local real estate agent who specializes in REO properties to sell the home. If this is this is the case, the homeowner will be expected to vacate the property.
Either way, the foreclosed on homeowner should expect to have to move and should plan accordingly. The new owner should send a Notice to Vacate and then file a Forcible Entry and Detainer action in court to have the court order you to move out. You will need to appear in court on the date specified. At the hearing the judge orders that the "writ will issue" which typically is 5 days after the hearing in which you must vacate the premises. If you have not moved out by that date, the sheriff will remove you from the premises
More information on what to do if you are facing foreclosure.
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