What Happens After Your Home Is Sold At A Foreclosure Sale

If you are facing foreclosure, you need to learn all about the foreclosure process so that you will know what is coming at you. Most people understand that, if they do not pay their monthly mortgage payments, their home will eventually be sold at a foreclosure sale. Then the question is: "What happens next?"

There is never a clear cut answer with legal matters. And foreclosure is no different.

In most states, once a home is sold at a foreclosure sale, the buyer at the sale is given time (30 days for example) to pay for the home and complete the transaction. When the amount bid at the foreclosure sale is paid, the buyer gets a deed to the home and immediately has possession. The person foreclosed upon has to move. Often, in the foreclosure process, the sheriff or another legal authority is given power to remove people and property from the foreclosed house.

But, as I said, nothing is ever clear cut.

In some states, a person who is foreclosed upon is given additional time by law to move after the foreclosure sale is final.

In some states, a foreclosure sale is not final at the time of the sale. Rather, there is additional time given for the person foreclosed upon to take action to retain his or her home or for there to be additional and higher bids. Only after the sale is final will the bidder have to pay the bid amount. Usually the high bidder is given time to pay.

In some states, depending the specific foreclosure action filed against the home owner, the foreclosure sale may be either (1) final at the time of the sale or (2) the foreclosure sale may be held open for more bids.

Mortgage lenders are not required to actually pay any money unless they bid more than the amount owed on the foreclosed mortgage. And they will not bid more unless it is an extremely rare and unique situation. Since the mortgage lender doesn't need time to pay the bid amount, a deed can be issued to the mortgage lender immediately and the person foreclosed upon has to move immediately.

The bottom line is that, if you are being foreclosed upon, talk with a lawyer licensed in your state to learn your state's foreclosure procedures and to determine how much time you have before you must move.

Stop! Don't blindly chase any option to stop foreclosure. See stop foreclosure options to learn what options you have in your situation. Remember, what works in one person's situation, may or may not work in your situation to stop, avoid, and prevent foreclosure. For more general information, see Stop Foreclosure - Five Options You Need To Know.

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