Does Foreclosure = Eviction?

[dustijane]

We filed ch 7 the other day...hadn't made a decision on whether to leave our house or not then. However, we are pretty sure we are going to let our house go and rent for a few years. I know that we will foreclose...but does that automatically mean we will have an eviction? I have been looking at rentals and so many say no evictions...nervous about finding a place after all is said and done.

[daxtell]

when the foreclosure sale happens you will be contacted by either the bank who took the property back or a local real estate agent whom the bank would ask to sell the property for them. some banks offer incentives like a cash for keys program for you to move within a certain time frame before an eviction proceeding would ever take place. if you are out by their deadline than the eviction will not happen. it is a similar process with renting in that if you default and are not out in a certain time frame, the owner can get what is called an unlawful detainer against you during the eviction proceeding. which is just their legal way of getting you out of the house. in both cases if they go to court then it does appear on your record.

my house was foreclosed on in 2007 and i moved before any of that. i rented a few houses with private landlords before applying to a major apartment community management company. and i was approved even with crappy credit.

[IamOld]

Daxtell - may I ask which "major apt community co" did you apply to? I really may need to know...if you'd rather, please PM me...and did you rent from apt co BEFORE or AFTER bkptcy????

THANK YOU!!!!!!

[panda]

We rented from a big complex in Washington State, signed the lease a couple weeks ago and are moving in on May 9th. No foreclosure on our credit report, although we are letting our home foreclose, but just over 1 month from bankruptcy discharge, our credit scores are still above 600, which are not great but at least workable. I am paying first months rent, $85 suresafe deposit that guarantees my deposit, I guess kind of like a bond, and the initial credit report fees plus $200 application fee. Overall very easy and doable for us, and I am extremely happy. I figured this was going to be the biggest nightmare for us, just trying to find a new home, what a relief.

[daxtell]

To IamOld: I rent from UDR... United Dominion Realty Trust which owns properties all across the United States. And my credit was so awful.. with 2 judgments before the bankruptcy. However I applied and they approved me. I signed a 14 month lease and I did not have to pay a security deposit; just something called a 'Suredeposit' insurance? It is something new...only $80. Then I filed bankruptcy chapter 7 after moving in. And nowhere in my lease does it mention anything about filing. It is just not something UDR will ding you on.

[MSbklawyer]

Technically speaking, an "Eviction" is legal action or self-help action (such as changing the locks) to force someone to vacate property.

http://dictionary.law.com/Default.aspx?selected=670

A foreclosure OTOH, is, generally speaking, a legal action to 'foreclose' (i.e. cancel) your ownership interest in real property because you failed to pay a promissory note secured by the real property.

http://dictionary.law.com/Default.aspx?selected=763

If you voluntarily leave the property before your mortgage creditor has taken action to force you to leave, then technically there has been no eviction. So, no, a foreclosure does not necessarily equate with an eviction.

But there's no way of knowing -- short of asking -- precisely what these potential landlords mean by "no evictions".

I'd be willing to bet, though, that if you apply to rent an apartment and you've got your security deposit and a couple of months rent to pay in advance, you'll be able to rent something even if the landlord in his own mind equates "foreclosure" with "eviction".

[tobee43]

Technically speaking, an "Eviction" is legal action or self-help action (such as changing the locks) to force someone to vacate property.

http://dictionary.law.com/Default.aspx?selected=670

A foreclosure OTOH, is, generally speaking, a legal action to 'foreclose' (i.e. cancel) your ownership interest in real property because you failed to pay a promissory note secured by the real property.

http://dictionary.law.com/Default.aspx?selected=763

If you voluntarily leave the property before your mortgage creditor has taken action to force you to leave, then technically there has been no eviction. So, no, a foreclosure does not necessarily equate with an eviction.

But there's no way of knowing -- short of asking -- precisely what these potential landlords mean by "no evictions".

I'd be willing to bet, though, that if you apply to rent an apartment and you've got your security deposit and a couple of months rent to pay in advance, you'll be able to rent something even if the landlord in his own mind equates "foreclosure" with "eviction".

MSbklawyer is there a statue of limitation after rec'ing a foreclosure summons and not fighting it, and surrendering the premises that the bank must abide by?


just wondering since Chase has had no movement towards our foreclosure in over 3 years? at first, we were very concerned about having our names on the deed, now, i don't care. Chase has made it loud and clear they took back the property by posting signs and changing locks, as well as maintaining it.

i know i haven't as yet filed a complaint with OCC, however, is there any other recourse??? just wondering?

[MSbklawyer]

MSbklawyer is there a statue of limitation after rec'ing a foreclosure summons and not fighting it, and surrendering the premises that the bank must abide by?

You've been foreclosed and the bank has not retaken possession?

If there's a statute of limitations on that, it would be state law, not bk law.

[tobee43]

You've been foreclosed and the bank has not retaken possession?

If there's a statute of limitations on that, it would be state law, not bk law.

yes, it's been over 3 years now, and nothing. other than the bank called and told us that WE re-opened our loan mod application...NOT...and they, Chase wanted know what are plans were. ( we had been out well over two years when they contacted us, and moved over 1800 miles away).

in as much as taken "possession", i would say yes, since they changed the locked and take care of the property dor the past three years, by changing the locks and winterizing yearly. however, we did, at one point, just want to have our names removed from the deed.

thanks so much for the response...i will research the state laws on the foreclosure process in nj. although, i figured AFTER the surrendering, SOMETHING would have happen other than Chase asking us to go through another loan lod, which the first time it sat with them for well over a year with no response. ( and it wasn't for a lack of missing docs, as we went in to Chase with ALL the paperwork and handed it right into their little greedy hands). Chase foreclosed right in the middle of the loan mod.

of course i have some thoughts, as to why Chase hasn't made any moves ...such as, we re-fin'ed right in the middle of the robo signing fiasco, and, also the house floods since the town made some critical changes in the curb of the road angle and water was now flowing freely toward the property the spring time. causing black mold issues, one entire living level knee high in water, water pouring through the now cracked foundation, over flowing leach fields, over flowing sepic..... and i could go on forever and a day. so, maybe they can't resell it, is just another one of our thoughts about it.

and really, the question is, is it that important to us that Chase ever forecloses???

[tobee43]

well yuck for ME...LOL!!!!

New Jersey "Legislation that sets a time frame under which a lender can file a home foreclosure action against a borrower who in is default was signed into law Friday by Gov. Jon Corzine.

The law, A-3269, gives a mortgage lender 20 years from the date of a borrower's default to bring a specific foreclosure action. It ensures that decades-old defaults – which under previous law could still be acted against – do not remain as clouds on a property's title, something that can grind a sale to a halt.

"Given the current volatility in the housing market, there is no room for ambiguity," said Assemblyman John Wisniewski (D-Middlesex), a co-sponsor of the legislation. "A distinct path to a clear title can be the difference between allowing a property to be sold or requiring it to languish in legal purgatory."
"Past defaults, even if they never lead to a formal action of foreclosure, shouldn't be allowed to hang over a property in perpetuity," said Assemblyman Gary Schaer (D-Passaic), a co-sponsor. "This is an area of law that should have been settled decades – if not a century – ago."

The law provides the time limits between when a lender defaults on a loan and when the mortgage holder can bring an action of foreclosure:

* Six years from the date of maturity on the mortgage, matching the statute of limitations in current contract law;
* 36 years from the date of recording or execution of the mortgage, provided the mortgage itself does not provide for a period of repayment in excess of 30 years; or
* 20 years from the date of default.

"As we look to jumpstart the housing market and give new homeowners the keys to their future, especially in cities hard-hit by the foreclosure crisis, creating this legal certainty is more import ant than ever," said Assemblywoman L. Grace Spencer (D-Essex)."

so, i guess it i should take a seat!! LOL!!!!!!!

[cory1848]

well yuck for ME...LOL!!!!

New Jersey "Legislation that sets a time frame under which a lender can file a home foreclosure action against a borrower who in is default was signed into law Friday by Gov. Jon Corzine.

The law, A-3269, gives a mortgage lender 20 years from the date of a borrower's default to bring a specific foreclosure action. It ensures that decades-old defaults – which under previous law could still be acted against – do not remain as clouds on a property's title, something that can grind a sale to a halt.

"Given the current volatility in the housing market, there is no room for ambiguity," said Assemblyman John Wisniewski (D-Middlesex), a co-sponsor of the legislation. "A distinct path to a clear title can be the difference between allowing a property to be sold or requiring it to languish in legal purgatory."
"Past defaults, even if they never lead to a formal action of foreclosure, shouldn't be allowed to hang over a property in perpetuity," said Assemblyman Gary Schaer (D-Passaic), a co-sponsor. "This is an area of law that should have been settled decades – if not a century – ago."

The law provides the time limits between when a lender defaults on a loan and when the mortgage holder can bring an action of foreclosure:

* Six years from the date of maturity on the mortgage, matching the statute of limitations in current contract law;
* 36 years from the date of recording or execution of the mortgage, provided the mortgage itself does not provide for a period of repayment in excess of 30 years; or
* 20 years from the date of default.

"As we look to jumpstart the housing market and give new homeowners the keys to their future, especially in cities hard-hit by the foreclosure crisis, creating this legal certainty is more import ant than ever," said Assemblywoman L. Grace Spencer (D-Essex)."

so, i guess it i should take a seat!! LOL!!!!!!!

That is insane! I thought I have read of cases where past homeowners have forced lenders to transfer the deed out of the owners name. Mainly because since the bank changed the locks and is taking care of the property, that in itself proves possession and the deed should be transferred. Maybe I will be living rent free for ever...

[IamOld]

That would be a kick wouldn't it?? Cory!! Sadly my state is not a judicial foreclosure state - you're late for more than 3 months (or you hit being 3 months late) they send you the intend to cure, and then they can schedule foreclosure w/in FOURTEEN days (my state hates its own citizens), and then I think you can be thrown out after the sale...MAYBE they'll give you 30 days...and of course the house stands there empty for years...

[IamOld]

we rented from a big complex in washington state, signed the lease a couple weeks ago and are moving in on may 9th. No foreclosure on our credit report, although we are letting our home foreclose, but just over 1 month from bankruptcy discharge, our credit scores are still above 600, which are not great but at least workable. I am paying first months rent, $85 suresafe deposit that guarantees my deposit, i guess kind of like a bond, and the initial credit report fees plus $200 application fee. Overall very easy and doable for us, and i am extremely happy. I figured this was going to be the biggest nightmare for us, just trying to find a new home, what a relief.

thanks!!!!!!

[IamOld]

To IamOld: I rent from UDR... United Dominion Realty Trust which owns properties all across the United States. And my credit was so awful.. with 2 judgments before the bankruptcy. However I applied and they approved me. I signed a 14 month lease and I did not have to pay a security deposit; just something called a 'Suredeposit' insurance? It is something new...only $80. Then I filed bankruptcy chapter 7 after moving in. And nowhere in my lease does it mention anything about filing. It is just not something UDR will ding you on.

THANK YOU!!!!! Daxtell!!!!

[tobee43]

That is insane! I thought I have read of cases where past homeowners have forced lenders to transfer the deed out of the owners name. Mainly because since the bank changed the locks and is taking care of the property, that in itself proves possession and the deed should be transferred. Maybe I will be living rent free for ever...

yes, cory, i was in SHOCK!! and the kicker is the bank is just sittiing on it!! makes no sense. what a law..only in nj...so GLAD we are not there anymore.

IamOld: don't worry...you will find a place, many times now because of so many people's credit, landlords are adjusting, you will find a place.