Why does it take so long to get kicked out of a house when foreclosing?

[debtmonster]

What is the hold up? I don't understand how some people are able to stay in their home for sometimes 12 to 18 months after foreclosing. How is this possible? How come if you don't pay, the banks can't kick you out within a couple months or so? What exactly causing these huge delays?

My wife has a friend at work who's foreclosing on 3 homes that she owns. She's been staying in one of them for 12 months now and has not paid one thin dime. No mortgage. No property taxes. No home owner's insurance. NOTHING. She is filing Chapter 7 and she's one of the people who convinced my wife to finally do it.

My sister said she has heard of people staying in a house for as high as 18 months. I know this would be extremely helpful for me to stay here as long as possible if I can go bankrupt on my mortgage, but it seems weird that people can go for so long.

Once they do foreclose, what happens if you take your appliances with you on the way out? My sister said one of her friends had people come over taking photos of inside the house. We have stainless steel appliances in our kitchen that my wife does not want to leave behind. Since we're including our house in our Chaprter 7, the lawyer told me that we get an $8,000 exemption in Florida. Would we be allowed to legally take the appliances as part of this exemption? We wrote a check from our 2nd mortgage to Home Depot to pay for them over a year ago. The 2nd mortgage will be included in the BK.

I know the stuff would be worthless to sell as used, but to buy it all brand new would cost a fortune. I don't mind leaving it, but my wife doesn't want to. If we go and rent some place, I'm sure the landlord won't want us bringing all of this stuff to swap out.

[cupcake]

A person/family is legally entitled to a six month redemption period after the foreclosure sale. So everyone is guaranteed a minimum six-month free stay once they stop making payments unless the house is determined to be abandoned (then it's 30 days). I think the only reason some people get a longer period is because the mortgage company is behind due to all of the foreclosures and they can't keep up so the sale isn't scheduled right away.

As for the appliances, I think you can take them, especially if you paid for them. I am not sure on that, though, so it will be interesting to see what others think. The things you can't take (which most people don't want anyway): doors, sinks and faucets, carpet, etc.

[keepmine]

Take the appliances.

As to the balance of your question-depends on if you are in a judical or, nonjudical foreclosure state. If it's the former, lenders have a lot of legal steps they must follow including providing you with proper notices and time to respond.

[PoorGrammyinBK7]

Generally appliances are considered personal property - not real estate. In a real estate sales contract, they are usually hand-written in, if included at all, and considered to have no value unless stated otherwise. But it is not understood or expected that appliances, unless they are built ins, are included. So I would think you could keep most of them if you have enough exemption allowed in the BK (list them as personal property on your schedules).

But I am not an attorney, so don't take my word for it!

[Tbornetun]

Take the appliances. Every single person I know took the appliances with them when they foreclosed. They are your own personal property.
By the time you are forced to move from your home it will be long past the time of listing assets on a petition.

Besides, the appliances would not be part of the homestead exemption anyway.

[PoorGrammyinBK7]

Found this link but do not know how accurate it is. I would think its a longer time period now, just because of the case load.

http://www.foreclosures.com/pages/state_laws2.asp?state=FL

[debtmonster]

6 months won't be a long enough time. I need to stay there at least a year. It will take a long time to save up money for another car and thousands needed for moving and renting a new place. It will be take a good entire year's pay for everything I need to do.

[Tbornetun]

You may be able to stay longer depending on the length of time it takes the lender to act. They are overwhelmed right now with all the foreclosures going on, you will probably have a bit more time than that. Also, it is not 6 months from the date of your first missed payment, it is 6 months from the date of the sheriffs sale. You may very likely have about a year of rent free living.

[paintinrosesred]

Six months stay after sheriff sale? Are you sure? I've never heard that. I was told that after the sheriff's sale they must evict and it could be ONLY 21 days after the sale to remain in the house.

[Tbornetun]

It all depends upon where you live. Florida says 180 days without stating 180days from what. In Minnesota you have 6-12 months from the date of the sheriffs sale, I am positive about that one. Every state is different. Your attorney should be able to tell you the specifics in your area.

[Tbornetun]

Ok, here are the details of the timeline for Florida:

The Notice of Default

You have promised to make your mortgage payments, pay your taxes and insurance, and pay your homeowner association fees. If you fail to do so, the lender may deem you in default of your mortgage. Declaring that you are in default is the beginning of the foreclosure process.

The Filing of the Lis Pendens

The first legal action taken by the lender is to file a Lis Pendens at the county courthouse. The term "Lis Pendens" means "suit pending" and puts the public on notice that a law suit has been filed against you. Your lender has declared you in default and is demanding that the note be paid in full immediately.

The Clerk of Court records the Lis Pendens in the Public Records and you are served.

The Answer (20 days)

In response to the Lis Pendens you have 20 days to file and answer with the court. An answer isn't "I've been laid off from work and cannot make my payments." In the lender's eyes that is an excuse, because you promised to pay. An answer might be, "I never had a mortgage with this lender. They have confused me with someone else." It is an opportunity to show why you shouldn't be foreclosed upon.

If you file an answer, and it is usually a good idea to do so, a hearing date is set. At the hearing the lender's attorney will be present and you may tell the judge the reason for your default.

The Hearing

You may present your case at the hearing and the judge will decide what to do next. If you have a valid answer, the judge may require the lender to give you a reasonable amount of time to work things out. However, if you simply haven't made your payments the judge will rule in favor of the lender and the foreclosure will go forward.

The good thing about the hearing is that it sometimes takes some extra time to be scheduled. And, let's say you are trying to use a short sale to save your credit, this extra time may be important.

If you do not file an answer within the 20 day period or if the judge rules against you at the hearing and doesn't allow you more time, the lender's attorney will file a motion for a Summary Judgment Hearing. This is another hearing which will be scheduled before the judge. It could take place in a few days or weeks depending on how busy the judge is and how aggressively the Lender's attorney acts.

The Plaintiff (Lender) is required to give notice to all of the defendants as to the time and place of the Summary Judgment Hearing. If it is difficult to find and serve the defendants it slows the process.

The Summary Judgment Hearing (45 days)

At this hearing the Lender's attorney will present the case against you. You may give testimony if you are present. The judge will most likely rule against you and find you in default of the mortgage. The Summary Final Judgment will show the amount you owe the lender including principal, interest, attorney fees, expense, and court costs.

Foreclosure Sale Date (75 days)

The next step is that the Judge sets a foreclosure sale date which is usually 30-45 days after the hearing. This is when the property will be sold on the Courthouse steps. This date is sometimes extended due to legal holidays or by agreement of your lender.

Equitable Right of Redemption

The foreclosure sale is final and your right to "redeem" the property is over. You cannot suddenly pay off the mortgage and save your house. There is a period of time after the sale that the court reviews the sale to ensure that everything is in order. During this time someone could object to the sale on the basis that proper procedures were not followed. This period is usually 10 days, after which the Certificate of Sale is filed and title passes to the new owner.

Sheriff's Set Out (85 days)

At this time if you have not moved out of the house, the Sheriff may show up to put you and your belongings into the street. If you go back into the house you would be trespassing.



It looks as if you have a minimum of 85 days from the date of your default in Florida. As I said in a previous post, there are so many right now that they are delayed in getting the ball rolling. I would say you have about 85 days from the date you are served.

[TEW]

time line in PA is about 276 days if you don't delay it some how

[debtmonster]

What is causing the sheriff sales to take so long? Who's the one buying the houses? Why is it a sheriff's responsibility to sell the house? I thought they were in the "serve & protect" business, not the real estate business.

How does one get behind on the taxes so you could put a tax-lien certificate on the house and only buy the entire house for what the taxes are owed?