Relocating after Foreclosure: where to Set your Nest Next

Right after foreclosure, homeowners may feel extremely dislocated. Uprooted from their old homes, they will also have to face the bad music of bad credits, and the reality that they can no longer apply for home loans. Not in the next three to seven years, anyway.

It’s not the end of the world for homeowners suffering from the repercussion of foreclosure, though. There are still homes waiting for them across the states.

Home rentals

You won’t be able to buy homes in the several years because of bad credit, but that doesn’t mean you need to live in the streets. Depending on how much you have left after your foreclosure case, you can choose among the myriad of home rentals across the states.

Make sure, though, that this time you don’t overshoot your budget. Only go for rents that you can afford to pay for. Remember that you’re still waiting for your credit score to recuperate, and being evicted from your home rental is the last thing you want.

Filing for bankruptcy

If you find that you have absolutely nothing left in your account, try to see if you’re eligible for bankruptcy rights. Under the constitution, you should receive some sort of stipend to keep your head above water while you’re recovering from your bout with debt.

Make sure that you’re being absolutely honest when you file for bankruptcy, though. Don’t try to hide assets that you can sell to generate more income just because you want them saved.

Basic Tenant Rights during Foreclosure

As a tenant, it’s an absolute nuisance when your homeowner goes into a foreclosure and you’re asked to move out and look for a new home. Every state has different terms for tenants who are victims of foreclosure.

Fore example, tenants in Arizona who are evicted because of foreclosure are given only 8 days to vacate the premises. In California, on the other hand, the vacating period is longer. It can be as long as 60 days, depending on the agreement with the bank and/or the court.

The best you can do is to maximize whatever legal rights you have.

Demand for a Notice of Default

Prior to the foreclosure proper, lenders should have already disseminated a Notice of Default to all parties involved. This means that even before the foreclosure proceedings have taken place, the tenants should have already received a warning.

For more information about the notice of default, you can visit the Foreclosure Forum online.

Consider Suing for Damages

In any event that the homeowner refuses to recognize the term of lease, the tenant can immediately sue their landlord in the Small Claims Court. Tenants will at least be given relief for moving expenses, loss of security deposit, and a temporary home.

Cash for Keys

Sometimes the bank chooses to step in to make matters less messy. Let’s face it: facing legal matters is always dirty business. When the bank is in a hurry to have the home vacated for sale, they usually offer cash “relief” for tenant victims.

Aside from the keys of the house, the tenants also need to enter an agreement with the bank that they will not vandalize the place, steal any light fixtures, and/or leave “foreclosure pets” behind.