What Happens After Foreclosure? A Guide for Homeowners
September 16, 2008
What happens after foreclosure depends on whether you live in a state that has a Redemption Period.
A Redemption Period is a time after the house has been auctioned to the highest bidder that the homeowner has to buy it back for the auction price. The time varies by state. In some places, it is as little as 3 days. In other states, it is a full year.
If your state has a Redemption Period, you will be able to use the time to raise the money to buy back the home. You may also be able to stay in the home for the entire length of the Redemption Period without making any payments.
The states with Redemption Periods are:
Alabama - 1 year
Alaska - 1 year
Arkansas - 1 year
California - 1 year
Conneticut (based on court decree)
Idaho - 1 year
Illinois - 3 months
Iowa - 20 days
Kansas - 1 year
Kentucky - 1 year
Maine - 90 days
Michigan - 30-36 days
Minnesota - 6 months
Mississippi - 30 days
Missouri - 1 year
New Jersey - 10 days
New Mexico - 30 days
North Dakota - 6 months to 1 year depending on circumstances
Oregon - 6 months
South Dakota - 30 days or more
Tennessee
Vermont - 6 months to 1 year
Wisconsin - 1 year
Wyoming 30 days or more
So, what happens after foreclosure if you live in a Redemption Period state is that you have some time to buy back the property.
If you do not live in a Redemption Period state, or if the Redemption period has expired, what happens after foreclosure is that you will be forced from your home.
Sometimes, you can get the purchaser to give you "key money" to leave the premises quickly and to leave the property in good condition. In many cases, ex-homeowners destroy the property before they leave. The buyer knows it is worth their while to induce you to leave nicely.
If you do not leave, then the buyer can bring an eviction notice against you. When the occupant is a foreclosed homeowner, generally they only have 3 days after an eviction notice for you to leave.
In this case, you will have an eviction as well as a foreclosure on your record. This makes it extremely difficult to rent after you loose your home.
So, what happens after foreclosure is that you may or may not have a Redemption Period. Then you will be forced to leave the home.
If you are facing foreclosure and want to know what happens after foreclosure as well as the steps of foreclosure and what all of your options are, you need to get a copy of the free report The Foreclosure Survival Guide today.
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