Foreclosure, how much time do I have to get out ??

Dear Mr. & Mrs. XXXX:

You are in "pre-foreclosure" it sounds like to me. Typically you have around three months from the date of receipt of the Notice of Default to bring the loan current somehow through loan modification, forbearance or refinance, or by selling the property and paying off the existing mortgage (assuming their is equity in the property).

You have not yet received the Notice of Trustee's Sale it sounds like. After a Trustee's Notice of Sale Date is recorded, posted, and scheduled; you may will have some time before the actual foreclosure sale date is actually held or occurs. After the actual foreclosure auction, you will have a short time period before either the buyer at auction or the bank (if there were no bids) begins or initiates the final eviction to remove the occupants from the premises, gain possession of the property and exercise their ownership rights and do with it what they want; rent,sell or flip it.

Hope this helps you understand the process and timelines involved...

P.S.

As I mentioned to you, a person can file Bankruptcy within hours of the Trustee's Sale Auction and this throws a "monkey wrench" in it for the lender; and they cannot proceed with foreclosure once a person files Bankruptcy !!

This is called the "Automatic Stay in Bankruptcy" which means no creditor (including the mortgage lender) can take adverse legal collection action (such as foreclosure, liens, levy on property, judgments, etc) while the person is under the protection and administration of the Bankruptcy proceeding.

If the owner files Bankruptcy, this will give the owner even more time because then their will be a Bankruptcy Court "341 Meeting of Creditors" scheduled subsequent to the Bankruptcy case filing. Once in Bankruptcy, the Bankruptcy Court Trustee (not to be confused with the Trustee for the lender) will typically try to sell the property for the mortgage company and will assign a Realtor to sell the property. The mortgage company could, however, file for a "Motion to Lift the Automatic Stay" and proceed with foreclosure; but often the bankruptcy court trustee will deny the banks motion and try to sell it himself through the Realtor assigned by the court. This all applies in a Chapter 7 (No Asset) case.

In a Chapter 13 Bankruptcy filing, or "Reorganization"; the debtor may be able to keep the home by filing a payment plan with their creditors to pay outstanding debts over time; usually a 5 year payment plan period.