All homeownership counseling is confidential and free of charge.
Call 720-295-0111 or visit our website for more information.
For the seller of the home once the bank owns the house they have to do through a legal process where the "owner" is notified and requested to move out. If they do not move out the Sheriff is hired via the legal process & timing and they come and evict the "owners" out of the house. Someone hired by the bank puts everything in the house outside.
From a credit standpoint for the owners who were foreclosed on, a foreclosure will go on your credit report and that takes a number of years to get removed. I am not an expert on credit so these are general guidelines and talking to your accountant or attorney will give you much more specific answers.
To answer your question, I may need to know more information. But I'll share a few things with you.
1) You may bid on your home at the sale. But do remember that you must put down a non-refundable deposit and be able to refinance the home within the time period set under the terms of the auction.
2) Once the sale is final you in all tense become like a tenant. The lein holder has the right to evict and give you a 72 hour notice to leave the property. You can talk to the realtor, that is selling the home for the bank, and ask permission to stay longer. They will grant it sometimes.
3) Monies are paid out in order of priority. 1st/taxes 2nd/1st lein holder --3rd/2nd lein holder etc... If there is any money after everyone is paid off, then the owner gets the left over money.
4)If there is still money owed it becomes an unsecured deficiency debt. The lein holder has legal rights to pursue you to collect the money.
5) If you filed a chapter 7 bankruptcy prior to the sale and received a discharge after the sale you won't owe anyone any money. Of course then you'll have a bankruptcy on your credit report.
If you need anything, feel free to contact me.
For example - is losing the home part of a bankruptcy filing, or is everything else still ok? What I mean is, are there credit cards and/or car loans that will also be written off too?
Credit scores in general have become an important part of the evaluation someone does to decide whether to loan you money to buy something else - a new car, or a washing machine maybe.
So if a home is taken back by the lender in a foreclosure, that will show up on the person's credit report to sort of warn future potential lenders that there have been problems in the past. It can stay on the report for many years. A bankruptcy or failure to pay back any other loans can also show up in this way and can mean either higher interest rates on future credit purchased, or it can mean future loans won't even be approved.
But - every situation is different, and if the foreclosure is the only bad thing on the credit report then it really isn't the end of the world, especially in these times when that has become so common in so many places. Renting should still be possible and after about three years it may even be possible to qualify to buy a new home again.
By all means, if your home is in danger of being foreclosed, talk to the lender and to other advisors also. Given the economy we're all in now, banks are more willing than ever before to try to work things out so the homeowner can stay in the home. They can reduce payments - for a time or permanently, and all sorts of other things. Do be careful of people who want to charge you a lot of money to provide what looks or sounds like a magic 'fix' though.
Lastly, if you're in this situation, don't give up hope. That's very important. There is help out there - you just need to be willing to go after it.
I see you are registered as a Home Buyer on Trulia, so was it a home you were trying to buy that you lost to foreclosure, or your own personal home? If you could please reply to that question, I will be better able to answer.