Our house sold in foreclosure auction - what's next??

[jnfrross]

Hi,

We knew this day was coming after several delays (ch7 & trustee sale date rescheduled 2x). The house was bought by a third party and we're in San Joaquin Valley, CA. We're pretty much ready to go but still need to move some stuff out.

What happens now?? Can they come & throw us out today? Change locks? How much time do have to move out? My understanding is that we legally have 3 days if not then eviction process will start?? Do we have any paperwork to do? When should we cancel the property insurance?

Thank you in advance for any help or advice!
Jennifer R.

[daxtell]

whoever the house was sold too, or if the bank bought the house back itself which most of time happens.. they will contact you and give you proper notice...which i believe is much more than 3 days. if it is the bank that bought it back then most likely they sometimes offer a cash for keys program or give you a notice if you do not accept that of an eviction proceeding which could take a few months.

[bulletproof77]

Not necessarily. The bank could at any time, change locks and deny access to your former house. Once it reverts back to a new buyer or the bank, it's game over. 3 days after my house went back to Skank of America, all locks were changed and no trespassing signs were affixed to the house. Former owners do NOT have the same rights as even renters. If you are still living there, they can serve you with a 3 day notice to vacate. A lot of banks are no longer doing the cash for keys thing either. No paperwork, you don't own it. And no insurance on a property you no longer have an interest in. Sure, some people will say "Until the deed is recorded your liable".....Who cares ? That deed will be recorded soon, so why pay ? Time to move on..

[mickinfish]

Not necessarily. The bank could at any time, change locks and deny access to your former house. Once it reverts back to a new buyer or the bank, it's game over. 3 days after my house went back to Skank of America, all locks were changed and no trespassing signs were affixed to the house. Former owners do NOT have the same rights as even renters. If you are still living there, they can serve you with a 3 day notice to vacate. A lot of banks are no longer doing the cash for keys thing either. No paperwork, you don't own it. And no insurance on a property you no longer have an interest in. Sure, some people will say "Until the deed is recorded your liable".....Who cares ? That deed will be recorded soon, so why pay ? Time to move on..

I'm also with Skank of America. How long before they took over the home???
My last payment was in June 2010, and I'm in Indiana.
Last time I spoke with BK department at "SOA", they seemed in no hurry to foreclose. Still waiting on NOD..

[Billssuck]

I'm with BOA too (in Missouri). Last payment was April 2010 and no NOD yet. But I'm in an active ch13 so that could be why mine is very slow. They haven't even gotten the relief from stay lifted yet. I have no idea how much longer for us....

[bulletproof77]

In my case (Southern California), I was amazed at how quickly Skank of America moved. Only 3 days after the house reverted back to the bank, a locksmith and a real estate agent along with a crew of "trash out" people, showed up, changed locks and posted signs. I had left the home in "broom clean" condition, so the "trash out" was not necessary. 6 weeks later, home was re-sold to a private buyer. I had included the house in a Chapter 7, but the bank got a lift of stay from the court. I wish everyone well, but I see a lot of misinformation telling people that they have plenty of time after the property is sold, either back to the lender or a private party. That is not necessarily the case and you should be prepared to move quickly. If you leave property in the home and wish to retrieve it AFTER the trustee sale, you will find your former lender extremely uncooperative, if they even bother to take your phone calls, since you are no longer the homeowner. Breaking back in AFTER the home has reverted back to the lender/private party is in most areas, considered a crime. As a side note, my former neighbor's home (Wells Fargo) was just taken back and secured 4 days after trustee sale. And that was just 2 weeks ago. Banks, despite all the hype about wanting to aid homeowners are being very aggressive in taking back what is after all, their property.

[bulletproof77]

I'm also with Skank of America. How long before they took over the home???
My last payment was in June 2010, and I'm in Indiana.
Last time I spoke with BK department at "SOA", they seemed in no hurry to foreclose. Still waiting on NOD..

If you have not received the NOD, you still have lots of time. It's only after you receive the Notice of Trustee Sale that you should start making plans. You can check the status of your house on Recontrust.com If it's NOT listed yet, you still have time.

[daxtell]

bulletproof were you already out of the house when you said '3 days after' they changed the locks? i work for a realtor/broker who manages foreclosed homes for banks and the first step in the process in determining occupancy. if there is a renter or an owner in the house then options are given to both. nobody is locked out immediately on the sale date. proper notice is always given and all options are offered. if you were already out of the house then i can understand why they moved so fast to change the locks to secure the home. and broom swept condition is not always what you think it is. it means, hangers gone from closets, everything out of the shed, under the crawl space, out of the attic, no hoses or anything left laying anywhere. no soap in the bathroom, cleaner under the sink or anything of that sort.

[Flamingo]

The website for the Sheriff's sale will indicate the responsibilities of the person who purchases a foreclosed house - once the sale is made, it is usually the responsibility of the new owner to evict anyone living there. Your state code as to laws concerning eviction, etc. will give you the answers you need as to timing and responsibilities. Your state may have something on its website to help those in foreclosures as many states have done free seminars for information to help people due to the amount of foreclosures. I would investigate the procedures in your own state as to the timing of this but I am certain the new owner has to give you a specific time period in which to move out but it probably will not be a lot of time since you already know you should not be there and should have things ready to go to get out of there.

[albacore44]

I think it dependson the area, how many foreclosures, and if the banks think they can sell the property quickly. I have seen 6 homes in my tract go through auction since November 2010, and only 1 has actually moved out. The others are still occupied, banks have done nothing, and no for sale signs. Only a dead lawn and unkemp landscaping gives you a clue. Of course these are big homes that once sold for $8-$900,000 and sell for less than 1/2 that now. The $100-$300K market is what is moving, as they are somewhat affordable. I'm in Riverside

[Flamingo]

I think it dependson the area, how many foreclosures, and if the banks think they can sell the property quickly. I have seen 6 homes in my tract go through auction since November 2010, and only 1 has actually moved out. The others are still occupied, banks have done nothing, and no for sale signs. Only a dead lawn and unkemp landscaping gives you a clue. Of course these are big homes that once sold for $8-$900,000 and sell for less than 1/2 that now. The $100-$300K market is what is moving, as they are somewhat affordable. I'm in Riverside

When the property is purchased at auction, it is no longer in the "banks" name. The new buyer (usually an investment firm) has to put a certain amount down that day and has 30 or so days to pay the rest. When they complete their part of the purchase, the house is transferred to their name (firm or whoever) and it is no longer the responsibility of the bank. Whoever purchased the house can now do what they want with it and if there are people living there, will evict them. One can find out via the website for Sheriff's sales in their area what is going on as to a particular property, if it sold and for how much.

It's a shocker to look at who purchases foreclosed homes and how little they are sold for. I have a co-worker who had to let their parents' home go after their mother died and they could not sell it and pay off the mortgage. They made their last payment June 2010 and the house went to Sheriff's sale early in May 2011. An investment firm purchased it for less than 1/2 of what was owed on the mortgage. That firm has already had people out to the property in less than 3 weeks after the sale. It has been a horrible experience for her to let her family home go but she had no choice.

[albacore44]

When the property is purchased at auction, it is no longer in the "banks" name. The new buyer (usually an investment firm) has to put a certain amount down that day and has 30 or so days to pay the rest. When they complete their part of the purchase, the house is transferred to their name (firm or whoever) and it is no longer the responsibility of the bank. Whoever purchased the house can now do what they want with it and if there are people living there, will evict them. One can find out via the website for Sheriff's sales in their area what is going on as to a particular property, if it sold and for how much.

It's a shocker to look at who purchases foreclosed homes and how little they are sold for. I have a co-worker who had to let their parents' home go after their mother died and they could not sell it and pay off the mortgage. They made their last payment June 2010 and the house went to Sheriff's sale early in May 2011. An investment firm purchased it for less than 1/2 of what was owed on the mortgage. That firm has already had people out to the property in less than 3 weeks after the sale. It has been a horrible experience for her to let her family home go but she had no choice.

Yes, but many are not purchased by brokers and investment firms, and are bought back by the bank holding the mortgage at the auction. I have a good auction website I check weekly, and it names who bought the property at auction. There was a very nice property like mine 3 doors down, the people walked last november. The website showed they owed $850K. On the auction website it showed sold for $420K in february, and listed a name. I googled it and it is a guy who owns a restraunt in town here . Now he obviously was watching that property and got a hell of a deal on it. Someone moved in 2 weeks ago, I assume it was the buyer.

[bulletproof77]

bulletproof were you already out of the house when you said '3 days after' they changed the locks? i work for a realtor/broker who manages foreclosed homes for banks and the first step in the process in determining occupancy. if there is a renter or an owner in the house then options are given to both. nobody is locked out immediately on the sale date. proper notice is always given and all options are offered. if you were already out of the house then i can understand why they moved so fast to change the locks to secure the home. and broom swept condition is not always what you think it is. it means, hangers gone from closets, everything out of the shed, under the crawl space, out of the attic, no hoses or anything left laying anywhere. no soap in the bathroom, cleaner under the sink or anything of that sort.

I never said "locked out on the sale date"...But if people are being told that they can stay forever after the deed has been transferred to a new buyer, well good luck with that, it isn't going to happen. You don't get free housing no matter how much you want to stay. Can't pay ? Don't stay is pretty much the mantra of the banks. And I have no idea where you work, but here in Southern California, the banks are moving pretty aggressively. In my own case, I vacated a day after the trustee sale. I wanted to be prepared and know where I was going to end up. And as far as "broom clean"...I guess everyone's definition is different. My ex and I met at the house and not only made sure NOTHING was left, we also scrubbed sinks, cleaned carpets etc. and made sure the place was secure. I felt bad enough about losing the house, but I thought at least I could make an honorable exit. As far as after the trustee sale "deals", they are not being made in my neighborhood and the last thing you want is an eviction on record.

[bulletproof77]

How true...I am currently buying the property I have leased for the last 2 years. Nicer home, same neighborhood...Amount owed by previous buyer ? $335K...My purchase price ? 49K cash. Thank God, I saved up some money. No more mortgages for me..EVER..Will never fall for that equity line crap again..(and this was supposed to include a "quote from Albacore, but didn't...ahh you get the point..)

[ssmdem]

We haven't received our NOD yet, so we've still got awhile. But our attorney told us to stay put until we received the sale notice and to be out a week before the sale -- just to give us some cushion in the event we forgot something and needed to get back in after we left. Now, that being said, we're already slowing packing and getting ready to go so I plan on staying put until the day of the sale because I know nothing will be left. Unless, of course, we come across a rental we don't want to pass up before hand.