FHA Loan Foreclosed Now What

[monica]

I live in Illinois I gave up my home in my BK7. Its an FHA loan and the Sheriffs sale was today. The bank Fifth Third took the property back since it didn't sell. I am okay with all of this, the part I don't understand is when do you think I will be asked to move out? I believe HUD will take the title? Does this happen quickly or does it take some time?

[Kuuner]

They'll get it over to their asset managers, board the asset into their system, get it assigned and soon...someone will start knocking on your door. Make sure if it's lived in, that it looks lived in. I can't tell you how many times we've rekeyed the house only to have to rekey the rekey so the previous owner can get back in because my asset manager jumped the gun.

[yonifreedom]

Sometimes they may offer you money to move out. Cash for keys.

[monica]

I would love it if they did the Cash for Keys. Moving can be expensive.

[Kuuner]

I would love it if they did the Cash for Keys. Moving can be expensive.

It would be nice but I wouldn't count on it. It's cheaper to file an unlawful detainer and wait for 30 days than it is to pay cash for keys and when the occupant is the former borrower, there is more motivation to evict than pay...usually.

[monica]

Really I am just wondering how long I have remaining in my house, I heard about 60 days after the sheriff sale but I am unsure if that is accurate? My husband seems to think its longer than that.

[Kuuner]

Really I am just wondering how long I have remaining in my house, I heard about 60 days after the sheriff sale but I am unsure if that is accurate? My husband seems to think its longer than that.

once the sale is ratified, I do not believe you have any rights, especially if you are the former owner. They can send you a 3 day and then start eviction right away. Again, once the sale is final and over...

[yonifreedom]

I would look up the code for your state. Where I am, the foreclosure process is non judicial and therefore requires lenders to evict anyone in the house including homeowners, tenants, squatters or all others to take possession. So in most cases, its cheaper in both time and money to offer cash for keys.

[Kuuner]

I would look up the code for your state. Where I am, the foreclosure process is non judicial and therefore requires lenders to evict anyone in the house including homeowners, tenants, squatters or all others to take possession. So in most cases, its cheaper in both time and money to offer cash for keys.

There is no statutory requirement, REQUIRING the lender to evict.

[yonifreedom]

 

I would look up the code for your state. Where I am, the foreclosure process is non judicial and therefore requires lenders to evict anyone in the house including homeowners, tenants, squatters or all others to take possession. So in most cases, its cheaper in both time and money to offer cash for keys.

There is no statutory requirement, REQUIRING the lender to evict.

No, there is no law requiring a lender to evict where I am.

 

However, there is no other way for the lender to take physical possession legally without a Writ of Possession. The writ can only be obtained through the eviction process. Most lenders here would rather pay homeowner $500- $2000 than hire an attorney and wait 3-6 weeks.

 

I don't know where you are, but here in GA that's how it works. Again, OP would need look up their state laws. Things may be different in IL. But I said that already.

Edited July 19, 2017 by yonifreedom

[monica]

This is what I found, so I guess after the order is entered for the confirmation of the sale we have 30 days.

 

IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF POSSESSION, IN ACCORDANCE WITH SECTION 15-1701© OF THE ILLINOIS MORTGAGE FORECLOSURE LAW.