You may hear the process referred to as being “in foreclosure.” The truth is that foreclosure is far from a place – it is a bath. There are meaningful legal changes until the property goes up at a foreclosure sale. Before that it, is just warmup.
Many people who are facing foreclosure do not understand their rights. For example, some people believe that they are not allowed to remove personal property from the home if it’s “in foreclosure,” or they believe that creditors can come into the home before the sale. Many believe they should get out of their home before the sale. Keep reading to find out the fact and if you have questions, or would like a free bankruptcy consultation, contact The Law Offices of Paul Y. Lee at 951-755-1000.
You Own the Home Until It is Sold in Foreclosure
The lender is nothing but an outsider until they obtain the title to the property – and to do so they must be the highest bidder at the foreclosure sale. This means that the lender cannot enter your property – and neither can anyone else – without your permission. You are well within your rights to remove any personal property from your home.
Don’t Let Debt Change Your Thought Process
Again, know that being “in foreclosure” is not like being “in collections.” Many people facing foreclosure assume that the rules have changed and consequences will follow if they continue down the same road. The fact of the matter is that foreclosure is a process that can lead to losing property and a change in your legal rights, but it is the way there – not the end.
In California, the process of foreclosing on a property takes at least four months from the moment you get the formal notice of default to the sale. However, foreclosing creditors do not always act as quickly as they should, which can draw out the process for months and even years. For all that time, you still legally own your property.
Do Not Move Out Until the Foreclosure is Final
Even if you know you are going to lose the house when it is foreclosed upon, it is almost always best to stay in the home until it has officially been sold. Why? Because you can live there rent-free to save up money to rent a place or buy another home. You may be surprised to discover how long that process can be, during which you can be saving up money to start over.
If you want to keep your house and are considering bankruptcy options to do so, we strongly recommend talking to a bankruptcy attorney who can help you find the best way forward. Contact The Law Offices of Paul Y. Lee at 951-755-1000 to receive a free legal consultation at your earliest convenience.
