Moving Out
Leaving a home before given an eviction notice is a big mistake. But if you are facing foreclosure, when should you move out?
Once a borrower has missed making payments on their mortgage, the bank will take the initiative and start an initial foreclosure lawsuit which can take anywhere from 3 to 6 months after the initial missing payment. Just because a homeowner is behind doesn’t mean the court will automatically start the foreclosure because the banks must go through the right steps in the legal process to prove their case.
During this part of the process, the homeowners should very much stay in their homes as the courts have done nothing to grant possession of the property to the lender or bank. The borrowers will still have some time to correct things and remain in the property. If the borrower still misses payments, the next step is called the sherriff sale of the house, or foreclosure auction, depending on where you live.
When the home is sold at public auction, the borrower usually no longer has ownership of the property. But in some states, there is a redemption period which allows the homeowner to keep living in their foreclosed home if they can pay off the amount due to regain ownership. During this redemption period, the borrower cannot be evicted from their home and thus, do not have to move out.
This whole time period can be used to repair the borrowers financial status and repair the harm done so far. Most of the time, moving out of a home too early can negatively impact the borrower’s ability to sustain economically after the loss the home. The extra time can help the families regain footing and possibly pay off the amount owed to the bank.
