It’s important to acknowledge that the prospect of losing your house can be a psychological blow as well as a financial and practical one. You can’t avoid these emotional realities—you’re not a machine—but facing them can help you approach your foreclosure in as calm and rational manner as possible.
If you’re like many homeowners, the thought of foreclosure triggers fears of ending up in the street. So let me reassure you: It just doesn’t happen like that.
Foreclosure is an orderly process. You’ll get notice before the process starts and before the house is eventually sold, if it comes to that. And these days you will most likely have at least several months after the foreclosure sale before you will actually have to move out. This is because homes put up for sale at public foreclosure auctions often fail to garner an acceptable bid. So the property ends up with the lender—which then must locate someone else who wants to buy and occupy it.
Even if the property ends up in the hands of a new owner at the foreclosure sale, in almost all states the new owner will have to give you a formal written notice to leave. Typically, you’ll have from three to 30 days. And if you don’t leave at the end of that period, the new owner will have to go to court and get an eviction order. In other words, you’ll almost certainly have enough time to make new housing arrangements.â