Foreclosure to your home can make you feel like your world is turning upside down. You are in the wake of just losing a cherished investment and on the dreaded credit report that might hamper your bounce back. It is important that you know the options you have to prepare after the foreclosure of your home accordingly.
Getting Your House Back After Closure
You can manage to get the ownership rights of your home back, even after foreclosure. Statutory redemption is a right in many states that allows you to effect regaining ownership.
The key to this process is paying the foreclosure price charges and related interest costs, all within a limited period. During the reclaiming period, you can continue living in your home. The procedures to the statutory redemption vary state to state, liaise with foreclosure defense professionals, and know about this process.
Don’t Do Nothing
A foreclosure does not mean you have to move out of your home instantly. You can stay in your house during the foreclosure process that might take a while. After the foreclosure sale date, you go from a homeowner to a tenant, but only when the owner allows you to rent the house.
Know that only a court order can evict you from your home before the period ends. Leaving your home or not challenging the closure will see you evicted earlier. Consider your options thoroughly, and you may save your credit reports or avoid costly lawsuits.
Move out Voluntarily or Eviction?
After a foreclosure sale date, they are only two options, either moving out voluntarily or wait on forceful eviction out. The latter will happen after the new owner formally evicts you through a court process. It is advisable to move out voluntarily and pursue any options to get a home back. Eviction can risk more damage to your credit reports, something that may put off future mortgagers or home sellers.
Cash for Keys
Evictions and dragging through redemption periods can be expensive for the new homeowners. Consequently, these may force some owners to sort other means to coerce you on moving out. One such technique is the cash for keys.
Cash for keys is a financial payment offer for you to move out before an agreed date. Cash for keys can be a quick fix solution for your bounce back, but fighting the eviction, however risky, may offer you more rewards. Ensure that the cash for keys offer does not give up all your legal claims. The cash should be independent of certain payments or rights such as:
- Security deposits
- Utility shutoffs cost
- Their responsibility for poor conditions and injuries at the property
Recovering Finances Post Foreclosure
Bad credit reports associated with foreclosure make you a less favorable option for loans in banks and landlords. The solution lies in you saving a lot of your money after the foreclosure sale date. Such money can enable you to meet the high deposit demands of home sellers/landlords and gain some trust. Foreclosures last on your credit report for at least seven years.
Your Landlord is in Foreclosure
In case you are renting out and your landlord goes into foreclosure, your options may vary. Much of the conditions are set between you and the new homeowner. The opportunity to stay in and continue renting is possible in some scenarios.
Firstly, if you are a bona fide tenant and the house is now owned by a bank and not a real estate company. Bonafide tenants can continue renting despite the new owner’s demands. Bonafide tenants move in before the foreclosure, and their rent agreement is free of relationships with the previous owner.
Secondly, if you are a section 8 tenant, you have the right to keep renting under the already existing agreement. Eviction in this case only stands if there is a just cause or based on agreements on past contracts.
If you face imminent eviction from your rented home, you will most probably have a period of 90 days to take your landlord to court for any damage reimbursements.
Foreclosure has a lasting impact on your shelter and finances. The best way to stay grounded and battle the situation is by consulting with attorneys on your best options. A lawyer will help you make informed decisions and support you through them.