Your Home Has Been FORECLOSED...Why Do You Still Think You Can Stay For Free?
This post was inspired by Richard Weisser of Better Homes and Gardens Metro Broker's featured post "Has the old adage "you don't pay, you don't stay" become obsolete?" as well as a recent experience with a young professional couple who thought they still had the right to stay in their already-foreclosed home in Roseville, CA for free.
First of all, I have to admit that it's really disappointing to find out that people who seem like they should be "reasonable" or "intelligent" enough to know better (both of them work at a local Sutter Hospital, he's a lab scientist and she's a nurse) think they're entitled to continue to live in a house for free, even AFTER it has been foreclosed.
You see, this couple was offered a chance to stay and pay rent until they were ready to move out...but they claimed they were too busy to move out (husband said he works 12-hour days) and that they didn't have any money to pay rent (wait, didn't he just say he worked 12-hour days?)
Wasn't the 7+ months of not paying their mortgage (while the foreclosure process took place) enough of a free ticket for these people? I wonder if people who already have a foreclosure on their credit report think it's no big deal to have an eviction on there as well. That's not very smart if they plan on becoming renters...unless their landlords are mom & dad, of course! :)
When people default on a mortgage (whether it's a strategic default decision or not), they still have the legal right to stay in the home until it is foreclosed.
However, as soon as the foreclosure at the trustee's sale takes place, the homeowners should give up possession immediately... because at that point, they are no longer the "owners" of the house. In California, the foreclosed homeowners are generously given a 3-Day Notice To Vacate before the eviction (unlawful detainer) process can begin.
Sylvia Jonathan of Coldwell Banker Platinum Properties raised a good point in comment #114 of Weisser's post:
"...given the state of affairs in the foreclosure world, it takes months and on occasion years for the lender to finish the foreclosure. If the borrower moves out, there is a vacant home in the neighborhood. Stuff happens to vacant homes. It is my belief, therefore, that the borrower should act as a dutiful and careful custodian of the property."
I know that every situation is different. Some homeowners can't stay in their homes during the foreclosure process for whatever reason, and others can. Personally, I think what people do with homes they still own is their business and their decision. It's the people that refuse to pay and want to stay in a home that is no longer theirs that I have a problem with. At the end of the day, foreclosed homeowners will eventually be evicted...it's just a matter of time and money.
BOB & LEILANI SOUZA
Real Estate Investment Specialists
Southwest Placer County, CA
Bob Souza - 925.513.3400 - firstname.lastname@example.org
Leilani Souza - 916.408.5500 - email@example.com
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