If there are tenants in the house that was foreclosed on, the new owner must honor the existing lease. In these cases, the new owner may either 1 offer the existing tenants a new lease or rental agreement or 2 begin eviction proceedings. Tenants in some California cities may still have a right to stay in their buildings. Cities with eviction or rent control laws prohibit new owners from using foreclosure as a reason for evicting tenants.
This way you, as the tenant, will receive a copy of the Notice of Default and Notice of Sale and know the status of the foreclosure. You can buy a Request for Notice at stores that sell legal forms or get 1 from the customer service department of a title company.
There are resources for tenants to get more information about their options. Call us at 1 What Is Nonjudicial Foreclosure? Learn how a nonjudicial foreclosure works, what states use the nonjudicial foreclosure process, and more.
Basics of Nonjudicial Foreclosures When you take out a home loan, you sign either a mortgage or deed of trust, which creates a lien on the property. Steps in a Nonjudicial Foreclosure Below are the steps in a typical nonjudicial foreclosure, although the process varies widely from state to state. Loss Mitigation Review Period Under a federal law that went into effect January 10, , in most cases, the loan servicer the company that you make your payments to can't start the foreclosure until the borrower is more than days' delinquent on the loan.
Notice of Default A nonjudicial foreclosure typically starts when the trustee the third party that administers nonjudicial foreclosures in many states records a notice of default or similar document at the county recorder's office. Notice of Sale The notice of sale gives the date, time, and location of the foreclosure sale. It is typically: recorded in the county land records mailed to the borrower published in a newspaper, and posted on the property or in a public place.
Where you live, you might receive: a notice of default followed by a notice of sale a combined notice of default and sale a notice of sale, or notice by publication in a newspaper and posting on the property or in a public place.
The Foreclosure Sale At the foreclosure sale, if a third party makes the highest bid on the home, that person or entity will then become the new owner of the property. When You Have to Leave After the Foreclosure You might not have to move out of the home right away after the foreclosure sale. Deficiency Judgments Depending on the laws of your state, the foreclosing party might be able to obtain a deficiency judgment after the nonjudicial foreclosure by filing a separate lawsuit.
Talk to a Foreclosure Lawyer If you're facing a foreclosure and want to learn about potential defenses, whether the foreclosing party can get a deficiency judgment against you, or how to avoid a foreclosure by working out an alternative, consider talking to a foreclosure attorney. Zip Code. When a house is sold at a foreclosure sale for less than the outstanding mortgage debt, the difference between the debt and the foreclosure sale price is called the deficiency.
In many states, the foreclosing party can get a personal judgment, called a "deficiency judgment," against the borrower for the deficiency as part of a judicial foreclosure or by filing a suit thereafter. Learn how lenders collect deficiency judgments.
After the court issues a judgment, a foreclosure sale is set. At the foreclosure sale, if a third party makes the highest bid on the home, that person or entity will then become the new owner of the property. But in most cases, the foreclosing party will be the high bidder. At the foreclosure sale, the foreclosing party typically bids on the property using a "credit bid.
You might not have to move out of the home right away after the foreclosure sale. Depending on state law, the homeowner might be able to remain in the home until the court confirms the sale or, perhaps, until the redemption period expires. In some states, the homeowner gets the right to live in the home during what's called the " redemption period. After the foreclosure sale, confirmation of the sale, or the expiration of the redemption period depending on state law , the foreclosed homeowners must vacate the home or the new owner will take steps to evict them.
If you're facing a foreclosure and want to learn about potential defenses, whether the foreclosing party can get a deficiency judgment against you, or how to avoid a foreclosure by working out an alternative, consider talking to a foreclosure attorney. Contacting a HUD-approved housing counselor is also a good idea.
The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. Continuances, or postponements of the court date, are available under some circumstances.
If the debtors occupy the real property as a principal residence, the clerk of superior court must continue a hearing for up to 60 days from the date of the original hearing date if, at the commencement of the hearing, the clerk finds there is good cause to believe that additional time or additional measures have a reasonable likelihood of resolving the delinquency without foreclosure.
This requires filing a written notice of appeal. There is not a standard form for the notice of appeal. Borrowers or real property owners considering an appeal should consult an attorney licensed in North Carolina.
In order to prevent a foreclosure sale from moving forward while the case is on appeal, a borrower or property owner must pay a bond to the clerk of superior court. If the bond is not paid, a judge can still hear the appeal, but the trustee can proceed with a foreclosure sale before a judge decides the appeal. The judge is limited to hearing the same issues considered by the clerk of superior court, as listed above.
A party who wishes to raise equitable arguments must file a separate lawsuit. A date for the foreclosure sale is often, but not always, scheduled at the end of the foreclosure hearing before the clerk of superior court, if the clerk enters an order allowing the trustee to proceed with foreclosure.
The notice of sale must be served according to statute and posted at the courthouse for at least 20 days before the scheduled sale date and must be advertised in a newspaper. Once scheduled, the foreclosure sale date can later be postponed or canceled by the lender. A lender may choose to postpone or cancel the sale if the borrower is actively working with the lender to save the property. Each new upset bid starts a new round of bidding, and another day period begins to run from the date of the most recent upset bid.
Once the day period passes with no further bids, the foreclosure sale may be finalized. Borrowers may consult an attorney licensed in North Carolina about their legal options during this period. The deed will be recorded in the county register of deeds office. The trustee or substitute trustee will file an accounting of the sale proceeds with the clerk of superior court.
If a property owner does not willingly vacate the property, the new owner may take legal action though the court to obtain possession, such as applying for a court order for possession or a writ of possession. Tenants occupying the real property may have additional rights and should consult with an attorney licensed in North Carolina with any questions about what rights they may have to remain in the property.
Read more. About What is a foreclosure? What is a power of sale foreclosure? What is a foreclosure by civil action? What is a tax foreclosure? What is a promissory note? What is a deed of trust?
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