If you are like millions of others, you are in a foreclosure scenario right now as we read in PART ONE (1). This is uncharted territory for all concerned. Things can happen pretty slow or fast. Be prepared to handle your worst case scenario or it will handle you. Here is part TWO (2) of some data that can help you and keep you navigating through this very stressful procedure.
Of interest to agents, investors, homeowners, renters and even neighbors are what happens to a property before, during and after a foreclosure..........
Next time you leave your home, look around you and become aware of the people you see. Neighbors, friends, the grocer, strangers, your boss, even the mailman is in foreclosure....of some sort.
Renters....Obama says you have to receive a ninety (90) day notice to vacate. In addition, cash for keys and relocation expenses are part of potential negotiations. You are covered under the landlord/tenant laws for your appropriate state. Unlawful Detainer action is required if you holdover. In California specifically Riverside County, this can take months. Check with your local courts. However, sooner or later....you will be moving...........with minor exceptions......
If Bank takes it over, they may let you stay for their sake as well as your own...in that order. Rent is negotiable. Tens of millions of dollars are being assessed against REO's that are in violation of local city and state code enforcements. Having a tenant in the property minimizes this problem until it can be sold. In addition, it keeps homeless out and damages from break-ins to a minimum.
If Investors take it over....you can expect a quick eviction to take the property back. I cover ths in detail in part three (3). Investors are driven and motivated by money through the return on investment (ROI). You will not find the love of Jesus at work here.....but instead cold, hard business. You are a problem to them.
WORTH NOTING: Insurance companies have clauses where they wont pay if a property is vacant for a certain length of time and if damaged during that time. Each policy has its own language. That means the bank eats the loss if the house has a problem while it sat vacant too long. Results...... the insurance doesn't pay.
Owners.....you are squatters and right after the trustee sale, subject to a three (3) day notice to vacate the premises. In one instance, an owner, who just received several FedEx requests from a lender to send in documents was stunned to answer their door at 11:00 am to find out that their home was sold at 10:00 am that morning. "You are trespassing and have no rights or claims to the property".. says the guy delivering the notice. "The new owner is not obligated to you and will apply to the courts for relief. If you fail to obey the three (3) day notice, you will be served with a summons and complaint and be given 5 days to respond with an answer". Welcome to nightmare on your street.
The answer you file to the complaint that they filed against you....has to have solid ground and legs to make it move forward in the eyes of a Judge. If it does past muster, then a trial date is set. If the judge finds there are no grounds to schedule a trial, the moving party will ask for a summary judgment that will lead to a court order that can go to the Marshall/Sheriff's office. They in turn will give you very short notice to get out. Call your local office for details and times. Each state has its requirements. In California, this whole procedure can have you out in 3 weeks and 6 weeks if you fight and lose (with exceptions). Meanwhile, you suffer.......mentally, emotionally, physically,psychologically and spiritually.
Failure to get out.....when they come to put you out..... is not a good thing. You will be forcible removed from the premises and your items moved to the street. There are other variations of this...all unpleasant. Majority of people leave valuable furniture and items behind not having the resources to take them.
If you are considering bankruptcy to stall off this procedure, you may prolong it by 30 days. This depends on a lot of factors. Savvy investors move swift and sure and can move the system forward at light speed to their advantage. Other less savvy property takers take longer, but the outcome remains the same ...you will be out of there one day soon.
Lawsuits to file motions, challenge the action and other choices are available and will cost you time and money to trigger. Whether these can succeed ...who can say? Meanwhile, you are obsessed, consumed and occupied with having a roof over your heads and you are fighting the good fight and the insult to all this is SO IS THE OTHER GUY......what horror.
GO TO PART THREE (3) OF THIS SERIES UNDER THE SAME TITLE AND READ ABOUT THE INVESTORS OFFERS
ALSO AVAILABLE AT MY ACTIVERAIN HOME PAGE BLOG PARTS 1...2....3