Question:
I will be signing a deed in lieu of foreclosure as soon as the mortgage company's attorney sends it to me (they said it will be one to two weeks from now). How long, after signing, will I have until I have to be completely moved from my home and can I negotiate if they don't give me enough time? I can't plan to move before receiving this notice because it will be considered abandonment and for the time being its a "free" place to live so my attorney has advised me to stay, but he's not sure of the amount of time I have before I must vacate. My realtor couldn't get the home to sell through a short sale due to the slow market in Michigan and the fact that the lender wasn't responding to offers on a timely basis. I need to know how much time I have from time of signing because I am in the middle of divorce and not receiving any financial support from my ex yet. Thanks!
Answer:
The agreement you signed to allow the attempt to sell the house was called a forebearance agreement (at least I hope you have one) in it it stipulated the terms by which the bank would then take the deed in lieu of foreclosure. One of those terms would say how long you have to stay after the deed in lieu of foreclosure is signed and recorded. If not, prior to the deed in lieu of foreclosure is signed you should attempt to get a short term rental agreement, if you can't then once the deed in lieu of foreclosure is signed and recorded and you stay in the property you are considered a tenant holding over without permission and can be sued for damages if you do not vacate after proper notice. Lenders will need time to market the property so in most cases they will work with you on time to stay after they acquire the property.
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