How long does it take bank to put a bank owned sign on a home in foreclosure?
Husband and I own two homes, we rent one out. We have a lot of problems with renting. We’re trying to keep 2nd home but depend on renters to cover mortgage. Home is not in foreclosure but if we have to let rental go, when will the bank place sign? Will current renters know about foreclosure BEFORE sign is up? It is a month to month agreement.
August 14th, 2010 at 9:33 am
They will know. Notices will be mailed to the property address as well as to you.
August 14th, 2010 at 9:38 am
I haven’t ever seen signs up saying that a home is bank owned. I don’t think they like to advertise that fact.
When the bank takes posession of the home, they will not allow people to continue to live there. The tenants would recieve legal notice.
Don’t be a jerk to your tenants. If you are going to let the property go into foreclosure, give the tenants a month notice so they can find another place to live.
Don’t be greedy. It doesn’t seem right to keep collecting rent from them after you quit paying your mortgage and give up on owning the place.
Don’t shoot yourself in the foot. If you contact the “workout” department of the bank and explain to them that the property does not provide you with enough income to maintain the mortgage, they might be willing to rework the loan so that you can keep the property. Banks would much rather have a loan than a house.
August 14th, 2010 at 10:17 am
By law, the bank must “post” the property before they take ownership thru an auction. That means a paper is taped to the door or garage. That happens 2 months before the auction. Usually no one bids at the auction so the bank becomes the new owner. Then they go to evict the tenants. Then the For Sale sign will go up.
This all happens 4-8 months after you miss your first payment.
August 14th, 2010 at 10:59 am
They will know. You said you depend on the renter to cover the mortgage and it sounds like you still have renters in it – unless I’m misunderstanding something you’re getting money that should be covering the mortgage…unless they’re not paying their rent. Like it’s been said in some of the other answers…notices get mailed to the property and when it finally gets to the point of the foreclosure, the bank will physically send an agent out to let the tenants know they have to leave. Why don’t you trying selling it as a short-sale first before you let it go into foreclosure. It’s the lesser of the two evils – even though it’s still not the greatest.