Mortgage Company bought back our home at Sherrif's sale, now what!

[lookin4info]

On 10/13/11, our home went to Sherrif's sale. After the sale, I called the atty's office handling the sale and was told that the bank bought it back. They said they were not hired to proceed with the eviction process so could not tell me anymore than that.

I then called the mortgage company to find out how long we would have to clear the house after the sell and am only told it's usually 30 days. We have not heard from anyone since then and have no clue what happens next. My son, who had been living with us stayed in the house after we moved out (we filed a Ch 13 Jan 10). He has now found his own place, and is completing his move, but we still have some things in the house that we had left for him and now have to clear out. It was also a good place for storage since we had to downsize.

Does anyone know if we will get a letter or something to tell us when to be sure everything is cleared out, or will they just show up and put locks on the doors. We're really getting nervous.

Thanks for your input!



The CH13 status information below is not updated (forgot how to do it, lol!) 11 pmnts made, only 29 to go. Our plan was reduced from 59 mos to 40 because some creditors did not file claims and a lot IRS taxes went to unsecured.

[mountanddo]

Why would the bank buy the house at the sheriff's sale. Don't they already own it? I thought you had 6 months as a redemption period. Is this a tactic to get the homeowner out sooner?

[LadyInTheRed]

Banks buy houses back at the foreclosure sale all the time. I think it's to keep it from getting sold at too low a price.

lookin4info, I don't know the answer to your question. But, if I were you, I'd get my stuff out of the house as soon as possible.

[justbroke]

I don't think you'll get any letter. More than likely, the bank will hire a company to go "secure" the home. If you're not there then they may treat it as abandoned. When they see that it is unoccupied, they will break-in, change the locks, winterize (if necessary), and clean out the property.

A bank does not own your property when you have a mortgage and note. You always own your own home. The foreclosure allows the bank to sell the home as per the foreclosure laws for your particular state. If no one bids at foreclosure, the bank itself can actually bid and take legal possession. Unless and until they are awarded title to the property, the bank does not own the property.

[mountanddo]

But what about the redemption period? In MN it's 6 months.

[HHM]

Found this, it might help.

http://www.hocmn.org/Stock/Editor/File/FactSheet-RightsDuringRedemptionPeriod.pdf

Basically, you have 6 months, and then your out.

[mountanddo]

Found this, it might help.

http://www.hocmn.org/Stock/Editor/File/FactSheet-RightsDuringRedemptionPeriod.pdf

Basically, you have 6 months, and then your out.

Thank you. That was very helpful. My boyfriend is going through this now.

[malf1204]

The bank did not own your home prior to the foreclosure sale, you did. The bank simply had a lien on your property. At the foreclosure sale the bank gets a credit equal to the amount owed. That is usually what they bid. You owed more than the house was worth so no one else bid. The bank has the highest bid and now they own your house. If you owed less than your house was worth the bank or high bidder would have to pay you the difference between the sale price and what was owed.

[justbroke]

Basically, you have 6 months, and then your out.

HHM, if the bank determines it to be abandoned, do you feel, as I do, that the bank will still take steps to "secure" the property? Even in the redemption period?

[Flamingo]

A house in our area went to Sheriff's Sale in May 2011. The mortgage company retained the home and the locks were changed on the house in less than 30 days. No one was occupying the house but that gives you a timeline as to what can happen.

[HHM]

HHM, if the bank determines it to be abandoned, do you feel, as I do, that the bank will still take steps to "secure" the property? Even in the redemption period?

Maybe, but Minn appears to have a possessory redemption period, so it may just be standard practice for the bank to wait out the 6 months. But you are right, the bank will likely hire inspectors to verify the condition and occupancy, and if it appears to be abandoned, they may take action (change locks, etc).

[mountanddo]

He plans on staying through the redeemption period. Right now he isn't working so he doesn't have a choice as no one will rent to him without a job.

[lookin4info]

Thanks for all the replies. I live in Ohio and it looks like there is no redemption period. I did check again with the mortgage company and they don't show that the eviction order {or whatever the term is} has been made. She said gthe Sheriff's dept. would bring the notice with the date on it that we have to be out. My son is still staying there off and on, but works odd hours so would probably not be there if they came by. I've had some surgery and am behind on getting everything out, but that is my goal. I'm almost at the point that I'm so stressed that I don't care anymore if I get the stuff out or not. I suppose I would learn to live without most of it. Thanks for the advice, I'll keep you posted, so it may help the next person in this situation.

[HHM]

If you can, you want to avoid an "eviction". Foreclosure is a big enough negative hit, no point in compounding it with an eviction. Although a foreclosure is NOT an obstacle to renting, and eviction would make renting more challenging.

[karm43]

I had a rental foreclosed, Day of sheriff sale they were out andchanged the locks.