Phase : Notice Of Trustees Sale
Depending on the state, the process for initiating foreclosure is different. In some states, nonjudicial foreclosures can be done that only requires filing paperwork with the necessary court to start the process. With this, the foreclosure e process can move rather quickly. Other states have judicial foreclosures, which require court approval for each stepmeaning the process takes a bit longer.
Once forms are filed with the court or necessary approval is met, the lender’s attorney or foreclosure trustee will schedule a sale of the property. A notice of trustee’s sale is then recorded in the county where the property is locatedstating the specific time and location for the sale, as well as the minimum opening bid for the property.
The lender must also generally advertise the property in the weeks before the auction indicating that the property will be available at public auction.
The time from the notice of demand to the auction date varies by state, but can be as quick as 2-3 months. Up until the date of the auction the borrower can still make payment arrangements or pay the amount due, including attorney fees incurred by the lender to start the process.
The Eviction Process After Foreclosure
After the court grants a foreclosure, reselling the home begins. Selling a foreclosed property is very different from how one would typically sell a home.
A foreclosed house must be sold through a sheriffs sale. A sheriff sale auctions a foreclosed home through the sheriffs office. Before a sheriffs sale can occur, however, specific procedures must be followed as part of the New Jersey eviction process.
If no one buys the house at the auction, it will be bought by the lender. After the sheriff sale, there should automatically be a ten-day right of redemption period. The right of redemption is a period of time in which the homeowner can pay the total amount owed or file a motion to set aside the sheriffs sale.
If the homeowner can pay the total amount owed on the home, then they could gain back ownership of the property. Filing a motion to set aside the sheriffs sale is a method to stop eviction after the foreclosure auction has already occurred. A motion to set aside a sheriffs sale is a nuanced legal procedure. If you choose to take this route, it is recommended that you consult a foreclosure attorney.
If the right of redemption expires without full payment from the homeowner, a buyer will pay the total purchase price and receive the deed for the home. Once they possess the deed, the new owner can apply for a writ of possession, which authorizes the sheriff to evict any occupants from the property.
What Is Statutory Redemption
In some cases, like a tax lien foreclosure, the homeowner may be able to regain their property through a process called statutory redemption. Statutory redemption provides you with a period of 2 years to buy your home back, during which you will typically be allowed to remain on the property.
If the home has been sold to a new owner or the bank, youll need to pay the final bidding price the home was bought for, plus interest, taxes, penalties, and any additional costs the current owner had to pay for the property. Note that the interest you will need to pay increases over time, with a redemption premium of 25% during the first year of the redemption period and 50% during the second year.
If no one has bought the home and it is currently the countys property, the county will decide on a fair market value that you need to pay in addition to the deed filing fee and any other applicable legal costs.
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Breaking Down The Foreclosure Process And Timeline In Pa
In Pennsylvania, the process of foreclosure commences after you, the borrower, becomes at least 60 days late on their mortgage payments. Before the lender starts foreclosure, they will generally have to send out two letters through the mail to notify you of their intent to begin foreclosure soon.
This is also the time you should contact aknowledgeable foreclosure defense attorney. Once the first letter is in your hand, you can start to figure out what the lender wants and how to challenge or delay it.
Upon reception of the first notice, you may have anywhere between two and four months to come up with a way to stop the foreclosure proceeding and avoid it altogether. With the help of your lawyer, you can look for an alternative to foreclosure, such as bankruptcy,loan modifications, or bringing the actual validity of the foreclosure into question.
If you fail to find a solution, or cannot find one that works for you, to stop the foreclosure, the lender will file a lawsuit against you to come up with the amount due. When the lender goes to court, this is called a judicial foreclosure proceeding and will rely on the courts final judgement for resolution. In most cases, the Court of Common Pleas in your county will have final jurisdiction, and may order that the property be sold as a publicly noticed sale.
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After Sale And Title Transfer
After the foreclosure sale is complete and title is transferred to a new owner, the new owner must provide written notice to all tenants providing the new owners name and address, and advising tenants of the following rights:
Tenants in Rent-Controlled & Rent Stabilized Units: Regardless of the outcome of a foreclosure, tenants in rent-controlled and rent-stabilized units maintain the same rights and obligations as they did under agreements with their previous landlords. The only change is the party to whom they submit their rental payments. The new owner must continue to comply with all laws and regulations that apply to units subject to rent control and rent stabilization.
The only exception to the above is that a new owner can evict a tenant, in only one unit, if the owner intends to occupy that unit as his/her primary residence. In that case, the new owner must provide notice to vacate at least 90 days prior to the effective date of eviction.
Tenants in Non-Regulated Units: Tenants residing in units that are not subject to rent control or rent stabilization may retain occupancy either until the end of their lease term or for 90 days after receipt of the notice from the new owner, whichever is greater.
Tenants that do not have a written lease may remain in the unit for 90 days, paying the same rent they had under the previous ownership.
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Get Help From An Experienced Foreclosure Attorney
There is no definite answer regarding how long the process from foreclosure to eviction can take. However, the New Jersey eviction process after foreclosure provides many opportunities for the homeowner to try and delay or stop an eviction. Even after a sheriffs sale, you may still have options to protect yourself from being evicted.
Working with a foreclosure lawyer can help you through this process and may help ensure that you have explored every option to prevent losing your home. Joshua Denbeaux is an experienced New Jersey attorney who has worked on foreclosure cases for over 15 years.
If you have already received a foreclosure judgment and are facing eviction, contact Denbeaux & Denbeaux Law today for a free consultation.
How Long From Foreclosure To Eviction
The answer is, it depends. First of all, it is important for any homeowner facing foreclosure to ensure they are in fact facing foreclosure. In many provinces, lenders do not use the traditional judicial foreclosure route. Instead, they use what is called a Power of Sale to quickly recoup the outstanding balance of the mortgage. If the homeowner is subject to a Power of Sale, the whole process will go much faster and they will have less time to vacate the property.
Assuming the property is going through judicial foreclosure, the homeowner can generally anticipate the process taking between three months to a year, after which they will have to leave the property once an Order for Foreclosure is issued.
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What Is A Redemption Period After A Foreclosure Sale Date
In some states, youre allowed to buy back your house after the foreclosure sale. The extra time you have to reclaim 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, though, 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, however. To find out about the laws of your state, contact a local attorney.
How Does An Eviction Affect Your Credit Scores
The good news: An eviction wont directly affect your credit scores. Your landlord wont report your eviction to any of the three nationwide consumer reporting agencies Equifax, TransUnion and Experian so it will not show up on your credit reports. However, your rental payment information may be included in your Equifax credit report and could negatively affect your credit score.
The bad news: An eviction may indirectly affect your credit scores. If your eviction was caused by your failure to pay rent, your landlord can sell your debt to a collection agency. Collections are generally reported to the three nationwide CRAs and can stay on your credit reports for up to seven years. A debt collection may also negatively impact your credit scores.
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The Foreclosure Process May Take Longer If You Contest It By:
- Filing for bankruptcy
- Seek adjournments
Keep in mind that elongating the foreclosure process is not necessarily a bad thing. In many ways, it can be to your advantage as it gives you more time to work on your case, whereas your opposition, the lender, is probably too tied up in other foreclosure proceedings to use the extra time to their advantage. Always speak to your attorney to see if challenging or delaying the process is the right choice for you.
Judicial Foreclosures Go Through Court
In a judicial foreclosure, an attorney files a lawsuit on behalf of the lender or investor in court to foreclose the home. You’ll receive a copy of the complaint, sometimes called a petition, which starts the foreclosure. You then get a limited number of days, like 30, to respond to the lawsuit.
Most judicial foreclosures are uncontested, and the lender gets a default judgment against the borrower. But if you choose to file an answer and raise a valid defense, like the foreclosure process had procedural deficiencies, or you raise other substantive defenses or counterclaims, then the case goes through the litigation process like a regular civil action.
If you don’t file an answer in court or if you file a response but the court decides the foreclosure should go ahead, the court will grant a judgment of foreclosure in favor of the foreclosing party and set a sale date.
Foreclosure Mediation Might Be Available
Many states offer or require foreclosure mediation for homeowners.
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How Does Foreclosure Affect Future Mortgage Opportunities
Missing a mortgage payment or defaulting can last on your credit report for up to 7 years, depending on the province.
The good news is that foreclosing on your home does not prevent you from applying for a mortgage in the future, but it can make it more difficult.
Ultimately, lenders want to know that youre a reliable person when it comes to managing debts. Defaulting on your mortgage can make lenders more hesitant to sell you a home. The best way you can improve your chances of getting approved for a mortgage is building up a healthy credit history with smaller loans and payments. It may take a couple of years, but its possible.
The other way is negotiating with the lender, which also could take a while. You may have to provide the circumstances that led to your previous foreclosure, or you may have to pay a larger down payment so the lender feels more comfortable with you as a borrower.
How A Mass Mans Eviction From His Home Led To A Bee Attack On Police
Before Alton King Jr.s $1.5 million home gained infamy as the scene of a bizarre honeybee assault on sheriffs deputies amid an eviction proceeding, it was the site of a posh fundraiser for then-gubernatorial hopeful Deval L. Patrick in 2006 and for countless pick-up basketball games since.
The full-sized basketball court that is the crown jewel of the grand home he built on Memery Lane was the lifeblood of the property in more ways than one. It also proved the root of Kings financial ruin at 80 years old.
Today, the space that was once a playground for the likes of retired NBA point guard and Springfield native Travis Best, along with scores of Kings closest friends and acquaintances of all ages and all walks of life, sits unused, lacking heat and lingering as a reminder of what once was.
He added the full-size court plus an apartment for his late mother to his home in 2006 to the tune of approximately $410,000. The ambitious project, King said, combined the two great loves of his life.
Too ambitious, in retrospect? King says no, despite the fact that his monthly mortgage more than tripled from just over $3,000 to more than $13,000 within a few years after obtaining the construction loan.
A former financial adviser, school volunteer, community activist, amateur basketball legend, talented pianist and chess master, King had been essentially couch surfing and grabbing a night here and there in cheap hotels since the bank changed the locks on Oct. 12.
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You Can Apply For Loss Mitigation Before Or After Foreclosure Starts
During the 120-day preforeclosure period, you may apply for a foreclosure alternative, like a loan modification, short sale, or deed in lieu of foreclosure. The servicer then has to review your application and let you know if you qualify for loss mitigation before foreclosing.
If you don’t apply for loss mitigation during the preforeclosure period, you can submit an application after foreclosure starts. Under federal law, if the servicer gets your complete loss mitigation application more than 37 days before a foreclosure sale, it can’t go ahead with the foreclosure process until:
- it tells you that you don’t qualify for any loss mitigation option
- you turn down all loss mitigation options that the servicer offers, or
- you breach the terms of a loss mitigation agreement .
The servicer generally isn’t required to evaluate more than one loss mitigation application from you. But if you get current on the loan after submitting your initial application, you can send in another one for review.
Eviction After The Foreclosure Sale
Once the home is sold, the new owner has the option of evicting anyone who remains in the home. A minimum of four months has elapsed by this point, and this is the first time in the foreclosure process that anyone can legally ask you to leave. Things will now start to move quickly, however. In California, the new owner can serve you with a three-day notice to quit. If you don’t leave voluntarily, the new owner can get a court order requiring you to leave the home by a specified date anywhere between three and 30 days after the judge signs the order. Refuse to leave, and sheriff will post a notice of eviction on your front door and physically remove you and your belongings from the property just 24 hours later. It’s always better to leave voluntarily in this scenario. If you’re sued, the eviction appears on your credit report and can hurt your ability to rent or buy in the future.
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Eviction Lawsuits After Foreclosure
To evict foreclosed homeowners after a nonjudicial foreclosure, the bank has to file a proceeding that’s separate from the foreclosure action. Before filing the suit, the bank typically has to give notice, 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, for example, to leave the property. Generally, the notice will give between three and 30 days.
If the foreclosed owner doesn’t move out, the bank then files an eviction lawsuit. This suit is often called an “unlawful detainer” or “forcible entry and detainer” action. An eviction procedure might take a few months, which gives you some more time in your house payment-free.
But forcing the new owner of the home to evict you in court has its downside. It’s often best to move out at the end of the period set out in the written notice instead of waiting until the new owner goes to court and gets an eviction order. If you’re sued, it’s a matter of public record and can hurt your ability to rent or lease in the future. You’ll already have bad credit as a result of the foreclosureand bankruptcy if you go that routeand many landlords subscribe to private databases that screen prospective tenants for being the subject of previous eviction lawsuits. That fact, above all others, can lead a potential landlord to turn down your application for a lease or rental agreement.