This is an actual situation which is confronting a client of mine who has not made a mortgage (or tax) payment in the last eighteen (18) months. The mortgage lender has finally gotten around to scheduling a foreclosure sale. This course of action has really been necessitated by the lender’s unwillingness to demonstrate the least degree of flexibility in terms of several short sale go-rounds.

The sale is scheduled for the end of January. My client has asked me for a timetable as to when he must leave. Since there has been a dearth of good news for him in the past year or so, I was not unhappy describing the path he would face in terms of when he needs to vacate the premises. None of these suppositions are “sure things” but this has been my experience:

     1. The Foreclosure Sale. Lately in Massachusetts, outside bidders have been appearing at foreclosure sales and making winning bids. As much as anything else, this has been caused by the lender’s obtaining current and realistic appraisals of the property in question, and adjusting their bidding instructions accordingly. Furthermore, the lender now have a pretty good “feel” for the expense of boarding and otherwise securing REO property, and they would rather sustain their losses and move on. Assume there is a successful bidder at the foreclosure sale. The “closing” on the sale generally takes place in 30-45 days. During that period, there is no question that my client can remain in the home.

    2. After the Foreclosure Closing. Self help, even for former owners who remain on the premises, is a thing of the past. The former owner is afforded the due process safeguards of a “tenant” in terms of removing him from the dwelling. This means the service of a notice to quit, which will be followed by a Summary Process hearing, which will be followed by a judgment for possession, which will be followed by an execution and eventual physcial eviction. For a sinle adult, this process can be completed in probably 6 to 8 weeks. For a faimilt with childred, or elderly former owners, add another three months or so. Often during this period, the former owners will be presented with a “cash for keys” scenario, and very often the amount of cash involved is not small.

So, I told my client to plan to leave his home around Memorial Day. It could be a longer duration than that time, but will almost certainly not be shorter. That’s four (4) more months of cost-free housing. What a country we live in!!!