When to move during the foreclosure process

After a sheriff sale, think about your best timing to leave your house, find another place to live, and moving.

You have several choices if you cannot afford to keep your home and foreclosure is the only exit option. How long to stay before moving out? Should you leave immediately, at the last possible date, or somewhere in between? This article will discuss some considerations for your decision. 

Start by revisiting your budget. During the redemption period, you do not make a mortgage payment. Look at your bottom line, which is your income minus necessary expenses. This can help you figure out what money is available for your next living situation.

Think about your answers to these four questions:

  • Would moving quickly save me money because rental costs will be less than the monthly upkeep of the house I must leave? Rental costs include rent, utilities and renter’s insurance.
  • Should I stay longer to save money for relocation costs? Relocation costs include first and last month’s rent, security deposit and moving expenses.
  • Do I need more time to look for new housing and sell items?
  • Will staying in the house prevent me from facing the reality of losing my home and taking the steps to move on? 

Next, be intentional and responsible. Yes, you have the right to wait until an eviction is served. However, an eviction is a matter of public record and will be recorded on your credit report. This will lower your credit score more in addition to the foreclosure recording. Instead, your goal should be to transition gracefully before being evicted and leave with the house in good condition. 

Moving is not easy. Plus you are likely going through many challenges in your life. However, you can make more knowledgeable decisions about the timing to help you navigate this stressful time. 

Michigan State University Extension has released a new toolkit for homeowners who are experiencing or have previously experienced foreclosure. This toolkit will equip these individuals and families with tools to help them recover their financial stability, in the case that a recovery of their home is not possible. The toolkit is available to download free at the MI Money Health website

Michigan State University Extension is a HUD-approved housing counseling agency has many MSHDA certified housing counselors at multiple county offices to assist you by phone or through technology. Find the one staff person nearest you at the MI Money Health website. MSHDA certified Housing counselors may be located online

To contact an expert in your area, visit the expert page, or call 888-MSUE4MI (888-678-3464).

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