Foreclosure Articles
What Happens After Foreclosure? A Guide for Homeowners
Ezine Articles.com
By Stacy Fox
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
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