You can stay in your home during the foreclosure process. Many homeowners are able to avoid paying their mortgage payments entirely. You should speak to a good real estate foreclosure defense attorney to find out what your options are. The benefit of staying in your home during a foreclosure is saving money. The longer you stall the foreclosure process, the longer you can stay in your home and not make any mortgage payments. This gives you time to save money to move if you need too.
Normally, you have at least three months of missed payments before a lender will start foreclosure proceedings against you. However, lenders are dealing with so many loans in default, foreclosures and short sales, that the process is taking much longer. Some homeowners are able to stay in their homes as long as 1 -2 years while the process is going on and they are negotiating with the lender to find an alternative option to foreclosure. You can delay by making partial payments, bringing the payments current and then defaulting again later.
You may have as long as a year before you could lose your home to foreclosure because there are so many foreclosures going on right now that the lenders and the courts are backed up with the record number of foreclosures.
The foreclosure process varies from state to state. An average judicial or non-judicial foreclosure can take about 5 months. For information on foreclosure timelines, check the laws of your state or consult with your attorney.
After the sale of your home, you may have some additional time before you have to leave your home. It depends on the statutory redemption laws of your state. Some states have a redemption period that ranges from a few days to a month or as long as a year. The redemption period starts immediately after the foreclosure sale. This is your last opportunity to redeem your home and pay the amount you owe to bring the payments current and get the deed to your home back. You cannot be evicted from your house during the redemption period. Even if there is not a redemption period, the new owner of the home has to evict you through proper legal procedures. If no one purchases the home at the auction, then the bank takes it back. Since it is not a priority to evict you, it may take a few months or longer for the bank to file the eviction papers and serve you.
Once you do receive a formal eviction notice to leave, you will probably only have about three days to leave. The notice will be posted on your door by the sheriff. You should make plans right away though once you know that the house has been sold at the foreclosure auction.
Now that you understand the foreclosure process, try and negotiate some kind of resolution with your lender first to avoid the process and save your home and your credit. Get help early on from a housing counselor or consult with a foreclosure defense attorney. You do have options.