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Your Rights When Your Home Is Foreclosed

By Cathy Moran

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The foreclosure sale is over and the bank now owns the home.

You’re now living in someone else’s property.

What next?

If you were the homeowner in California, here are your choices after the foreclosure:

Your rights before the foreclosure sale

Sit tight in foreclosed home

Once the sale has taken place , the new owner has the right to exclusive possession.  But, that right must be enforced through the courts.

No self help.  No changing the locks.

Instead, the new owner has to proceed through the courts in an unlawful detainer action.  It’s the same kind of action a landlord uses to evict a non paying tenant.

The end product of a UD action is a writ of possession which allows the sheriff to change the locks and remove personal property.

Personal property gets stored at your expense.

Usually it takes 3-6 weeks, a lawyer, and fees to get a writ of possession in court and pay the sheriff for his services.  So practically, you have a window to remain before the locksmith arrives.

Negotiate cash for keys

Because of the cost and delay of court proceedings, many buyers at foreclosure sales offer the former owner a deal:  leave within an agreed period, leaving the property in good order, in exchange for cash.

Generally, the quicker you move, the larger the payment.

An orderly exit by agreement speeds things along, gives the former owner some money to move with, and avoids the temptation to trash the place, or strip it of everything that can be detached.

Cash for keys is usually a good deal for all concerned.

Simply leave voluntarily

The most straight forward option is simply to depart on your own.  No need to interact with anyone.  No barrier to leaving whatever on the property.

Take off and start a new chapter.

Other tasks

Like any move, you’ll want to provide a forwarding address for your mail.

Cancel any utilities billed to you, and claim any deposits the utility may be holding.

And lastly, cancel any insurance you have on the property.  Once you are off title, you are no longer liable for injuries on the property or damage to the improvements.

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Filed Under: Consumer Rights, Real property & mortgages Tagged With: 2016

About Cathy Moran

I'm a veteran bankruptcy lawyer and consumer advocate in California's Silicon Valley. I write, teach, and speak in the hopes of expanding understanding of how bankruptcy can make life better in a family's future.

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