What happens if my house is foreclosed? A lot of people are asking this question, and the truth is, it depends on where you live. Most people think that they are forced out immediately following the sale of their home, but sometimes this is not true. In a lot of states, it might be possible to still pay the mortgage and keep your house even once someone has bought it.
This is known as a redemption period, and it can last for up to 3-30 days after the sale of the house. During this time, you are allowed to remain in the home, and you still have the chance to pay for it and reclaim the home. The buyer cannot legally evict you until this time period is up.
Keep in mind that this happens even after the buyer has paid for the home and the deed has been turned over to them. Even at this point, you often still have 3-30 days to pay for the house and turn the deed back over to you.
Then, the buyer will get their money returned to them, and it will be just as if the transaction never happened.
However, with most states as soon as the buyer pays, there is no redemption period. If this is the case, you usually have to leave immediately following the sale. In some areas you might be allowed to remain for a short time, but generally this is not the case.
However, keep in mind that how long you get to stay generally depends on who the house has been sold to. If it is bought by a private party, in most instances they will want you out immediately. However, a bank might be more lenient, since they generally have more important things to worry about then claiming a home. This is true whether you are dealing with Regions Bank Properties management, Bank of America, or another company.
So the answer to what happens if my house is foreclosed really depends on where you live. Check with your state laws as the foreclosure auction approaches, and see what your options are. Then, make your decision on the next course of action accordingly.
