If you have decided that you’ll ultimately have to give up your house because your mortgage payments are no longer affordable (if they ever were), the first step toward benefiting from your foreclosure is to stop making your mortgage payments. Open up a savings account in which to deposit as much as
Before your house can be sold, you must get some sort of formal notice required by your state’s foreclosure laws. The kind of notice you will get depends on where you live.
If you’re in a nonjudicial foreclosure state, you may get:
a notice of default (allowing you time to reinstate your mortgage
After the foreclosure sale, when a new deed has been recorded with a new owner’s name on it, you go from homeowner to tenant. A commonly held belief is that you aren’t legally a tenant unless you have entered into a formal landlord–tenant relationship and agreed to pay rent. In fact, with a couple
When you get a notice demanding that you leave the house, it tells you how long you have to vacate the property. In most states, you’ll have five to 30 days. (Check our Summary of State Foreclosure Laws for specifics on your state.) In most states, once the time period runs out, you still can legally
In some instances, panicked homeowners leave their home after missing a few mortgage payments or once a foreclosure is initiated. However, you have the legal right to remain in your home until the foreclosure process is completed. This process can take a few months or, in some cases, as much as a year
All states require that you get at least some notice before your house is sold because of foreclosure. See our Summary of State Foreclosure Laws for information on what kind of notice you can expect to receive. If it’s a judicial foreclosure (one that goes through court), you’ll be given at least
Judicial foreclosures take place through the state court system. While all states allow judicial foreclosures, some require it. To find out if you live in a judicial foreclosure state, check our Summary of State Foreclosure Laws. If you are facing a judicial foreclosure, it's important to understand
We're a month late on our mortgage and my husband, who's self-employed, just had surgery and can't work for several months. We feel like our house is just more than we can afford -- we probably should never have bought it. We'd like to sell now rather than hanging on and risking foreclosure. How much time do we have in which to sell?