What do people do after their home is foreclosed?

Not that this applies to me, but some family members have asked, and I don’t have an answer.

So the sheriff comes to your home and makes you leave, while the bank tosses you out.

Now, you have some friends and family (hopefully) and can stay for a few weeks there. But what do you do then? Every apartment that I know of checks credit and wouldn’t rent to the foreclosed family.

Even if you went to a private renter, he would want first, last, and security, and since you couldn’t pay the earlier mortgage, that looks like a pisser as well.

Any experiences or ideas?

This looks like a good place to start: Where do homeless people sleep?
I’ve known people that have taken to living in their cars, in tents, etc. If you can find one, there are efficiency apartments. Homelessness is one of the most serious problems in this country today and it will get worse.

War on terror my ass!

This is happening to a friend of my daughter’s. The woman has been shuffling between friends and her daughter. She’s finally found a job and is saving up for first/last/security.

Around here, you can rent a dump without any kind of credit check or deposit – the first month’s rent will get you in. The nicer places, the landlords are more careful. I suspect it might be the same everywhere. If you take care of your property, you’re going to be picky about tenants.

Social Services will put you in a hotel and pay for you to get a room or apartment. My company works with low income housing and it is really, really hard. My broker’s niece was homeless for three months, shuffling between relatives before a friend of the office gave her a chance on an apartment.

I’ve been homeless and took a job in a hole-in-the=wall store in exchange for sleeping in the back room and a few dollars a week. It’s sad, and people should do anything and everything to avoid it. Very few people find themselves on the street with no warning.

Once your house has been sold, in the state of Michigan you have 6 months to move out. You also have six months to buy your house back from the person who bought it at the auction–and they cannot legally say ‘‘no.’’

There have been times where the purchaser at the Sheriff’s sale has called the people who have to leave and paid them money to not destroy their house in the meantime. Apparently you can’t even go inside a house when it’s auctioned so ‘‘what you see is what you get.’’ Many people get stuck with lots of structural damage because of the bitterness of those who have been foreclosed upon.

On preview: Well, that may not actually answer the question.

My in-laws lost their house recently, and moved right into an apartment. They are managing the complex.

When we were looking for rental properties, we came across this one that had been foreclosed. It looks like it was one of those “The sheriff is at the door, you have one hour” situations. There was rotting food in the fridge…the power had been shut off. Clothes and baby pictures were strewn everywhere. Unopened bills were lying on the kitchen counter. It was rather poignant, actually.

Interesting…is there no “flipping” in Michigan, then? Do any other states do this?

I lost a home to foreclosure ten years ago. I had tenents who refused to pay the rent, I couldn’t get them out, and I couldn’t carry the mortgage + condo fees. There were other circumstances afoot, but that’s an executive summary for you. During/after, I had a shitty $420/wk job and I lived in a $400/mo. apartment in Seminole, FL for a while, rented in MA (from family) for a couple years, then rented various apartments. I never had trouble renting, always had first/last/security, always paid my rent on time, and always returned the property in good shape. Of course, I didn’t bother trying to get another mortgage until I’d passed the 7-year-mark and it was off my credit report.

The foreclosure happened in '97 and I rented again (from non-family) in '00, with my fiance, a few months before we got hitched. The guy renting ti us interviewed us, and asked us what he’d find if/when he ran our credit. I came clean and told him the whole sordid story of my foreclosure, and my wife’s credit was (and still is) top-notch. He was satisfied amd rented to us. Same deal with our next landlord, though that was a bit more formal.

Bad things happen to good people, including foreclosure. The lending market is is aware of this, and I found honesty really opens a lot of doors.

While I was in the midst of this, I read a very inspirational book called “The Richest Man In Babylon”. I can’t recall the author’s name but it’s required reading for folks with finance troubles.

My mom is in the process of losing her house. She’s living with me. In my studio apartment. She just got a job again, so hopefully shell be back on her feet soon

Foreclosures do not happen over-night. Folks who can not meet their payments usually either re-finance or move out and sell before foreclosure prceedings start, and then either purchase a home with lower monthly payments, or rent elsewhere.

Once foreclosure proceedings start, most folks move out and rent elsewhere, sometimes staying with family or friends in the interim.

Only very few, very stupid, people hang about in their home until the last minute and get turfed out by the Sheriff, without making plans as to where they will move. They then impose upon family, friends, and community shelters. Such folks tend to fall from one crisis to another in their lives.

I was lucky enough that when I was foreclosed on I was able to move in with my BF. I had been sick for a long period of time and couldn’t work which is why my mortgage got so far behind. I was starting to work parttime again when the foreclosure happened so I was able to afford a share of the rent, but there was no way I could catch my mortgage up.

That all happened 5 years ago. Today I am making a very good income and we are buying a condo. I know I did several stupid things with my first home, but I did learn from the experience.

BTW, I don’t know about bankruptcy and mortgages elsewhere, but here in Ontario, Canada, it is sometimes possible to be foreclosed upon, then go bankrupt, and then purchase the house back from the mortgage company. If the person has a solid job and is up to date on tax payments, but is way in over his or her head in debt, and only has the mortgage secured against the house, then by virture of secured debt such as mortgages having higher priority before unsecured debt such as credit cards, in a bankruptcy the mortgage company gets paid out while the unsecured creditors only get pennies on the dollar. That leaves the bankrupt person with no debt, so the mortgage company is then quite happy to sell the house back to the person who now can handle the monthly payments on a new mortgage.

I use this approach fairly frequently in family law matters where support payments push the payor over the edge financially. Unfortunately, it often leaves the person’s ex-spouse hopping mad, for more often than not (a lot depends on timing), the spouse’s propertiy equalizaton claim will lump him or her in with the other unsecured creditors.

You ignorant cow.

In many cases, the circumstances that provoke foreclosure also prevent folks from finding/making other accomodations.

Please mind your tone.

Chiming in with…a few family members have recently lost a house due to foreclosure. They cut it incredibly close, but did manage to find a person who would rent a house to them with full knowledge of their situation. The person was desperate for a renter and they were desperate for a house. Someone involved in the situation knew them both and set it up.

We were considering who would go to which family member if this hadn’t come through.

It was not a fun time.
Still ain’t, actually.

I know someone who lost a home to foreclosure. She saw it coming and moved right when she stopped making payments on the house.

I also know, from two different cases, that you don’t always have to wait 7 years after bankruptcy to qualify for a mortgage. It depends on a lot of factors.

MPSIMS is not the place for insults, Winston Smith. Please keep it in the Pit, or just refrain from saying it at all.

Exactly. And Muffin’s post was accurate, as well. Winston Smith, do you have something you’d like to share with the group?

Just to concur with the consensus, I too would add that a foreclosure doesn’t come without lots of warning.

Although I’m not particularly enjoying it, my work right now is in foreclosures. Most of the foreclosure lawsuits being filed right now are on loans that have been delinquent since about June. And, when the judge grants the judgment of foreclosure, the sale is generally between 30 and 60 days later.

Thus, we are talking about 6 months between the initial delinquency and the actual sale. During that time, the lender has sent notices, and the mortgagor is certainly aware of their inability to pay their bill. So, while this is an incredibly shitty situation, it is not one that comes right out of nowhere, without any opportunity to try and make some contingency plans.