Legal Eviction Procedures
After the gavel has struck at a trustee's sale you need to leave your home. The new owner can start legal eviction procedures, which can only take a matter of days.
After a judicial foreclosure you cannot be evicted during the redemption period. Redemption is discussed earlier.
If you don't leave your house after it sells at a trustee's auction, the lender can have the sheriff evict you through a process called "unlawful detainer."
The unlawful detainer process is the same used by a landlord to evict a tenant--you are now a holdover tenant in the lender's house.
What is a notice to quit?
The purchaser at a foreclosure sale must serve the occupants with a Notice to Quit before filing an eviction lawsuit to gain possession of the property.
If the occupant is the former owner or a tenant of the former owner, a 3-Day Notice to Quit is required. If the notice period expires and the occupants have not left, then the new owner may then file an unlawful detainer.
Even having an eviction lawsuit filed against you can damage your credit. It may be better to leave voluntarily than face eviction. You should talk to your legal advisor.
Ask for time to move out
It does not hurt to ask for extra time to move out. If you have taken fairly good care of the house, the buyer may keep you on as a caretaker until the buyer's plans for the property can be finalized. If the buyer wants to remodel for instance, it could be several months before plans are approved. During that time the house will be vacant and an occupied house is less likely to be vandalized or have other problems
Cash for Keys
Its foolish to be evicted from your foreclosed home. After defaulting on your mortgage, you've lived in your home rent free for a number of months. Prior to eviction, the bank will often offer to pay you to move out--this is known as "cash for keys." In exchange for your promise to leave the house in clean, undamaged condition, the bank will pay some of your expenses to move. Not all banks offer this--but its preferable to receive cash to move than to have the sheriff move you (also free--but the move only takes you to the sidewalk.)
Additional Protection for Renters
In a bill recently passed by Congress and signed by President Obama renters with month-to-month rental agreement must be given 90 days notice before they can be evicted. Renters with leases are allowed to stay in foreclosed home until their lease expires.(unless the foreclosed property is sold to a bonafide purchaser, in which case they must be given 90 days notice.) You can find more information here.
In 2008 the California legislature passed Senate Bill 1137. That bill gave tenants who are affected by foreclosure an additional 30 days notice before they could be evicted. They now must be given 60 days. This law however is superceded by the more stringent 90-day federal rule.
Fannie Mae and Freddie Mac Procedures
Two of the largest guarantors of mortgages, Fannie Mae and Freddie Mac, announced changes to their policy towards renters who are victims of foreclosure. The proposed plan is to let renters living in foreclosed houses to sign leases with Fannie or Freddie while the property is for sale. As a renter, you are allowed to either accept "cash for keys" or sign a new month to month rental agreement with Fannie Mae or Freddie Mac. They will not seek credit reports. Keep in mind, that you will either have to vacate the house when it is sold in foreclosure (or be evicted). You can find Fannie Mae's official policy at the bottom of this page (as a PDF attachment.)
We did Cash for Keys and we just got a Summons
We lost our home to Trustee Sale Jan 11 that reverted back to IndyMac / One West Bank.
1. They offered us a Cash for Keys on Jan 22 and we countered their date to leave.
2. They sent an Eviction notice on Jan 25, 2010 to vacate by Jan 29.
3. We made an agreement regarding the Cash for Keys and signed on Jan 27 to be out and do a walk through for Feb 15, 2010. (We have this in writing and recorded the phone calls to both their Attorney and RE Agent).
4. On Feb 06, 2010 we got a Summons from the bank that they are suing us for NOT being out on Jan 29, 2010.
They are claiming, among other things, we are; "...presently in wrongful possession of the property as tenants by sufferance against Plaintiff's consent. Defendant has failed or refused to surrender possession of the property after receipt of plaintiff's written demand for possession and is guilty of forcible detainer."
Furthermore, they asking the court for Judgement to make us leave, Attorney fee's and court costs of not less than $500.
We live in Arizona, and if I am reading the Court filing fee's correctly we have to pay $208 to Answer the Summons. I want to CounterSuit for the Cash for Keys Sum because now I do not trust them at all and we were already very leary before this. Our court date is Feb 16 2010 (the day AFTER the walk-thru date).
Am I understanding that correctly that in order to Answer the Summons Forcible Detainer after Trustee's Sale and file the Countersuit it will be $208? Why would they take this step when we have been very cooperative with them and taken good care of the house?
Signed
Dazed
Re: Cash for keys and summons
If you are successful in your countersuit, in California at least, you can ask the court to award you your costs and attorney's fees.
Reverse Mortagage situation
My parents home was in reverse mortagage and they have both died. I am unable to refinance the home and I have recieved a Notice of Sale at auction. I am unemployed and have two children. My question is the same, who long do I have to move out.
Re: Reverse Mortgage
Sorry about your parents. The eviction rules are the same regardless of how you arrived at the auction sale. Read my answers below for more information. How much time did the lender give you to see refinancing? Many reverse mortgages allow up to one year--of course, you need to be qualified.
Commercial Foreclosure
Im inquiring on behalf of a client who foreclosed on a comm'l tenant. The property went to a trustee's sale and had no bidders. The legal owner of the property as I understand it is now the 1stTD owner, my client. What would his next steps be? does he have to evict the tenant, can he change the locks now, etc.?
RE: Commercial Foreclosure
Every state is different in all the technical details but generally the lender in first position owns the property. Next step would be to consult a local attorney about the proper way to remove the tenants. Tenants have a lot of rights and it can be a minefield if you don’t follow the proper steps.
eviction time
The trustee sale of my foreclosed (in Ca) will occur on Sept 2, 09. How long after that sale do I have to move. I've herd many thing like 30-90 days so what should I expect?
RE: Eviction time
See my reply immediately below "Time after foreclosure auction until eviction."
Question about eviction
Our home is being sold at a public foreclosure auction on next week. The only documentation that we have received is the papers that get taped to my door stating the date of the sale. We have not moved out yet nor will we be able to for another 3-4 weeks!! I was wondering if you could give me an email explaining how to determain how much long I have. Some people state that we will only get a 3 day notice to leave. PLEASE HELP!!! Thank you
Time after foreclosure auction until eviction
At the auction, someone, including the lender, may purchase the house. Whoever buys the house then has to get you to leave. They can either evict you or pay you to leave. A bank will usually contract with an asset management company to handle that process. The asset management company will usually work with a local real estate broker, who will contact you. Often the representative of the purchaser will ask you to leave nicely. If you can’t leave right away but promise to leave within a certain period of time and to leave the house in good condition, the purchasers representative may have the authority to pay you “cash for keys.” Essentially, they will give you a few thousand dollars so they don’t have to go through the eviction process. In some cases, they may even ask if you want to rent the house. On the other hand, they may be hard-hearted and just go ahead with an eviction. A lot may depend on how well you can negotiate with the purchaser’s representative. Don’t use the term “cash for keys” when you talk with the purchaser. They’ll think you’re gaming them. Let them offer.
Thanks for information
Thank you for all the free information on your website. I am an unemployed homemaker with 3 small children, going through a divorce, and just received a Notice of Sale on my door this morning. Although my situation disheartens me, learning about what is and will happen gives me comfort.Thank you again.
How long until the sheriff comes?
Hi, I'm writing you because I found your email online. I need some advice and am searching everywhere. My house has been foreclosed with a sale date of August 26, 2009. How much longer until the sheriff comes? I have 3 kids and need time, What can I do?
RE: How much time until eviction after foreclosure auction
Many times houses don't sell at a foreclosure auction. If they don't the lender will either put the house back on the market or set it up for auction again. The process may take months, during which time they may let you stay in your house. If your home does sell, the new owners will either offer you cash to move out (cash for keys) or begin the eviction process. In some cases, the new owners will ask if you'd like to rent your old place. There's lots of options, just be flexible.
Creditors keep calling after 8 years
My parents foreclosed on their home over 8 years ago in North Carolina. My mother has died and someone keeps calling my father for money on the home. The bank sold the home and my father no longer owns the home. However it still shows on is credit report that he owns the home. Is there somewhere you can direct me to learn what his rights are and how to help him? He has limited financial resources and any guidance you provide is greatly appreciated. Thank you for your time.
Renters rights after eviction
Hi I am renting a house that has gone into foreclosure the owner is trying to stop the foreclosure but she is not sure if she can save it. What rights do I have to stay in the house if it does get foreclosed on? I am willing to pay the rent directly to the mortgage co.Thank you for your help.
When do we have to move out
Hello!Our home is scheduled for foreclosure and auction on 8/24/09. Please advise: When will we have to move out?Thank you.
Foreclosure eminent-CA
The date of sale for our foreclosed property is scheduled for 7/24/09. We are 56 & 57 y.o. and need to know how much time we might have in order to move. The mortgage company has told us that they were working on a "Making Home Affordable" possibility for us, but just today have told us that the foreclosure is still in process. Should we move now? Who do we contact for moving assistance? Do we qualify for Senior assistance in CA? if the sale is on 7/24/09 (Friday) - will we at least have the following weekend (25th and 26th) to move? To whom would we direct a query for "cash for keys?"We appreciate any suggestions or assistance. Thank you!
unlawful detainer
in CA, how long after unlawful detainer notice until the sheriff shows up?the occupants are 70 years old, one is on oxygen. Are there any services to help?
California Senior Legal Hotline
Most states have nonprofit agencies that profit free or low cost legal advice to seniors. There are a number of such agencies in California including California Senior Legal Hotline, www.seniorlegalhotline.org. Their phone number is 800-222-1753, except in Sacramento where the number is 916-551-2140. (They prefer to speak directly with the senior.)
PA Forclosure
In Pennsylvania I've read contradicting things regarding the eviction process after the Sheriffs sale. Some say you have only as little as 72 hours to vacate, some say you have from 30-90 depending. Any clarity on this matter?Thanks,Ed
evictions notice
does the evictions notice have to be given to the family by sheriff and does it have to be notary.
Evictions Notice
In most jurisdictions the sheriff serves the eviction notice.
I have not heard of an area where a notary would serve the eviction notice.
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