STAY PUT. It is not in your best interest to vacate as soon as you receive the default notice. No matter what state you are in there has to be “due process” based on the default before you will need to vacate. How long you have will depend on a number of variables including whether you have a deed-of-trust, which allows for a trustee sale instead of judicial foreclosure, OR if you have a mortgage and live in a state which requires judicial foreclosure. Judicial foreclosure takes longer (several months).
Check with your state’s attorney general’s office to get the particulars on foreclosure in your state. Get clarity on when you MUST vacate (usually just prior to the actual sale date). BIDE YOUR TIME, in today’s climate, almost anything could happen.
Be cautious about making another financial obligation too soon since the date could get pushed back, the lender could go belly up and not be able to move forward with foreclosures for months, the government could step in and mandate a moratorium on foreclosures, or your state could take some action which grants you more time.
*** Borrowers who hold mortgages which are backed by Fannie Mae and Freddie Mac can breathe a sigh of relief that both entities are now required to aggressively pursue modifications whenever feasible.
In any case, if all else fails, then the local sheriff’s office will notify you when you absolutely must move. Best of luck.
Answer Submitted on Mon, Mar 23 2009
Rate this Answer: