How to Delay Eviction After Foreclosure

Even if concerns about foreclosure and eviction are weighing on your mind, you still have options available. The good news is that there are state and federal protections in place and alternatives to consider before a move-out date is forced on you. 

What’s critical now is understanding your rights and options throughout the potential processes, along with how to delay eviction after foreclosure if you don’t have a new home lined up.

Legal Rights and Options

Foreclosures occur following nonpayment of a loan when a lender initiates a process that allows them to take possession of the collateral property and sell it to recoup their costs. This process must adhere to the mortgage agreement and applicable laws. State laws and procedures for foreclosures and evictions vary, so check with your local attorney general’s office to clarify your exact rights and obligations under your state’s foreclosure act. 

Your rights typically include:

• Residency in your property until a foreclosure process is completed
• The ability to challenge a foreclosure if your lender made an error or violated the law
• Freedom from mortgage lending discrimination under federal law
• Right to a surplus if a foreclosure sale yields more than you owe

You also have the right to certain communications, instructions, and amounts of time to respond to such notices (e.g., breach letters, foreclosure notices).

Legal Strategies to Delay Eviction

You can take certain actions to delay a sale, foreclosure, or eviction. These may include: 

• Reinstatement of the loan 
• Official challenge to the foreclosure at court or via lawsuit
• Application for a loss mitigation option prior to state or federal deadlines
• A bankruptcy filing
• Entry into a state-based foreclosure avoidance mediation program 

Also, if your lender does not follow the correct procedures and timing related to legal notices and communications, you may be able to pause your foreclosure proceedings and force them to restart the clock. See more tips on how to avoid foreclosure. 

Negotiation with Lenders

Foreclosure timing isn’t only based on government regulations—most lenders have their own loss mitigation programs to help you recover from a state of default and continue with your loan. A loan modification could prove invaluable in preventing an eviction order. 

Be patient and honest about any difficult circumstances, and ask about:  

• Forbearance for no or lower monthly payments, often for 6 – 12 months
• Fee and penalty forgiveness
• Deferral of missed payments until the end of the mortgage term (or property sale)
• Modification of your loan term and/or interest rate to reach a lower monthly payment 

As most foreclosures go to public auction, there’s no guarantee the lender will recoup the loaned funds. So, they’re incentivized to help find a solution that works for both parties. 

Government Programs That Help Homeowners Facing Eviction

Check out federal and state options to help you avoid foreclosure and eviction. These include: 

• Temporary monthly payment reduction up to 25% via FHA Payment Supplement
• HUD partial claim for an interest-free loan to cover missed payments
• State and county programs to keep homeowners in residence

Eviction Laws Vary by State

Foreclosure evictions are governed at a state level, although some federal protections exist. Find out which type of foreclosure is standard for your state and what steps are involved. The two categories are: 

• Judicial Foreclosure – The foreclosing party files a lawsuit, and the case proceeds through the court system, which may take several months or even years. 

• Nonjudicial Foreclosure – Typically a shorter alternative to judicial foreclosure where states provide steps and timing guidelines for the foreclosing party to follow outside of the courts. 

In either case, you have the right to stay in your home while you remain the legal owner—which is until the foreclosure process is complete. Depending on state law, you may also be able to stay in the property through: 

• The expiration of a post-sale redemption period 
• Ratification of the sale
• Other state-regulated deadlines

Eviction notification procedures and timing also vary by state. If you stay past your legal right to remain, then either the foreclosing party or new owner will have to initiate formal eviction proceedings.  

While evicting tenants can take months, evicting former owners through a court filing or as part of the foreclosure process usually only requires a Notice to Quit letter providing as little as a few days to vacate.  

Sale-Leaseback: A Debt-Free Alternative to Foreclosure

If foreclosure is a possibility in your near future, consider a residential sale-leaseback as a preventive measure that will free up cash, allow you to remain in your home, and discharge your current mortgage in full with no new debt. 

With Truehold's sale-leaseback, you sell your property to a residential real estate company while signing a lease agreement on closing day to remain as a renter. Instead of finding a new place to live, you’ll convert your current equity to cash and pay off debts with your home equity—ending any period of default that could otherwise lead to a foreclosure eviction. 

In addition to protecting your credit score from a foreclosure hit, you’ll also be free from property tax, homeowners insurance, and essential repairs. 

If sale-leaseback sounds like it could solve your foreclosure or eviction concerns, call (314) 353-9757 to connect with our advisors. We’ll break down the entire process step by step to help you decide whether Truehold's sale-leaseback option is a good fit for you.

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Sources: 

1. Investopedia. What Are Your Legal Rights in a Foreclosure? https://www.investopedia.com/what-are-your-legal-rights-in-a-foreclosure-4846357‍
2. Nolo. When Do You Have to Leave Your Home When It's in Foreclosure? https://www.nolo.com/legal-encyclopedia/when-do-you-have-leave-your-home-when-its-foreclosure.html‍
3. Bankrate. What is loss mitigation? https://www.bankrate.com/mortgages/loss-mitigation/