When must you absolutely move out

[RickInMich]

I have read many many threads here tonight on foreclosure. I see there are wide variances on the time people are able to stay in their home "rent free" after they've made the decision to let the home go into foreclosure.

My question, though, is slightly more specific. At what point must you absolutely leave your home? I'm in Michigan. Say the mortgage company proceeds with foreclosure. We're now at the point of the Sheriff's sale. Say it's scheduled for tomorrow. No one bids at the sale. Is it at that point the home goes back officially to the bank? I know there's a redemption period in Michigan, too. Let's say now we've gone through that period of time. Is it at that point we must leave?

I see several posts that say it will be very difficult to rent if you are evicted. I wouldn't want to get to that point. But I'd like to stay as long as possible to save money.

Anyone able to offer more specifics as to at what point you must move?

[kl030505]

I am wondering the same thing, so I can't help you. Are you filing for bk as well? Do you have an attorney?

My attorney advised us, that to get the maximum possible time in the home, we should wait until just before the sherrif sale, then file, putting the automatic stay in place. Mortgage co will file for release, my attorney will file a sort of bogus motion for dismissal, but then renig at the last minute and mortgage co will be granted relief (his filing the motion is just to buy more time). Once the relief is granted, they then have to readvertise for the 3 or 4 weeks or whatever prior to sale. Once the sherrif's sale happens, from what I understand you still don't have to leave immediately, although I really want to be gone by then, because like you, I am worried about eviction and having to find a place to rent.

[HHM]

The absolute last day to move depends on your state law.

In most states, the absolute LAST day to move out is the date of your eviction

In most states, if you decide to hold over even after the sheriff sale (or auction), the new owner (or the bank) has to go through your state's eviction process to legally remove you from the home (they cannot just send the cops the day after the auction). In this real estate market, I have seen people staying in their homes for many months and up to year after the sheriffs sale. (many banks will concede its better to have the home occupied rather than vacant).

In some states, you still have the right of possession during the "redemption" period. This is the time frame after the sheriff sale for which you could redeem the house by paying what the buyer paid for the house. (the redemption period aspect is more common with Tax Foreclosure...not too common with regular mortgage foreclosures).

So to answer your question directly, you can stay in the house until someone actually evicts you from the house.

However, practically speaking, you should probably move out on or just after the sheriff sale.

One thing to know...eviction does not get reported on your credit report. And there is no SINGLE national database of evicitions. Eviction databases tend to be fairly localized...and in the mortage hold-over context, its unlikly that your bank would report the eviction because its not something they do regularly. Granted, it's not too terribly difficult to find out if someone has been evicted, the more sophisticated eviction databases pull their info from court records.

[RickInMich]

Thank you for that explanation!! That helps a lot. Supposedly in Michigan, we have a six-month redemption period after Sheriff's sale. I'll have to see, though, if that is only in tax foreclosures

Thanks again!!

[technoreid1]

You will have quite a long time.....


We moved out even before they started the foreclosure process... (we needed peace of mind)

It felt horrible staying in a place we were going to lose!


techno

The absolute last day to move depends on your state law.

In most states, the absolute LAST day to move out is the date of your eviction

In most states, if you decide to hold over even after the sheriff sale (or auction), the new owner (or the bank) has to go through your state's eviction process to legally remove you from the home (they cannot just send the cops the day after the auction). In this real estate market, I have seen people staying in their homes for many months and up to year after the sheriffs sale. (many banks will concede its better to have the home occupied rather than vacant).

In some states, you still have the right of possession during the "redemption" period. This is the time frame after the sheriff sale for which you could redeem the house by paying what the buyer paid for the house. (the redemption period aspect is more common with Tax Foreclosure...not too common with regular mortgage foreclosures).

So to answer your question directly, you can stay in the house until someone actually evicts you from the house.

However, practically speaking, you should probably move out on or just after the sheriff sale.

One thing to know...eviction does not get reported on your credit report. And there is no SINGLE national database of evicitions. Eviction databases tend to be fairly localized...and in the mortage hold-over context, its unlikly that your bank would report the eviction because its not something they do regularly. Granted, it's not too terribly difficult to find out if someone has been evicted, the more sophisticated eviction databases pull their info from court records.

[dp1969]

You will have quite a long time.....


We moved out even before they started the foreclosure process... (we needed peace of mind)

It felt horrible staying in a place we were going to lose!


techno

Techno-

I posted a similar feeling...horrible staying in a place your going to lose. At least, I'm not the only one who feels this way...we, too, need peace of mind.
Anyone think you should have stayed until the last minute? We just can't bear to think of that. We need to move out before the "official" foreclosure and our neighbors (who we've become friends with) figure it out.

DP

[FreshLikeADaisy]

DP, due to circumstances beyond my control, I stayed through "the last minute" in a foreclosure and NO, I don't recommend it -- it's the worst thing in the world, to be sitting in a house you know is about to be ripped out from under you. It ended well, but... it was so bad waiting for the notice (and then receiving it a day before it was set to expire! I had to call the lawyers for the mortgage co and beg for more time, which they mercifully granted) that even in retrospect, had I known I was going to be out by __ date, I still would not have waited. Basically, count on being out by the date of the foreclosure (sheriff's) sale; no matter what state you're in, the eviction notice procedure cannot be started until then. So at least until the date of the sale, you're golden. After that, no guarantees at all. Good luck!!!

[FreshLikeADaisy]

Oh, and P.S.... there is no "eviction" on my credit bureau, only foreclosure and now bk. Just fyi.

[Sunshine]

I am in Michigan (Detroit area) and our sheriff's sale was August 29, 2007; our six-month redemption period ends February 29, 2008; we are still in the house and just yesterday received a letter in the mail stating we have until February 29 to redeem the house; if it is the same situation for you, you will have the full six months after the sheriff's sale to get out if you don't plan to redeem; even after that, they have to go through the court to evict, so really, you could possibly stay beyond the 6-month period, but not much longer, maybe 30 or 60 days

Good luck