Ask Nick - "When does a homeowner legally lose their foreclosed home?"

Hi Nick,

While wholesaling, I constantly encounter homes vacated by the Home Owners. I keep coming across notices from a company called American Field Services reading, "The property has been secured/winterized"… "Do not turn on utilities”...”heating tank has been drained"....

I understand the homeowner still has time before a foreclosure date is actually set, however, at what point does the homeowner legally loose the right to his/her house? Is it when he/she decides to walk out of the home and the lender sends in these American Field Services type of companies to secure the property?

OR Do homeowners lose their home when the legal process of foreclosure is ventually done?

These issues / questions have been weighing heavy on my mind...

Looking forward to hear your response,

Thanks!

Hi there,

Thanks for the question! The homeowner loses all rights to the property once the auction date has come, and the auction is completed. That's when it officially goes either to an investor, or more commonly, back to the bank (they are also present at the auction to protect their interests).

The name on the door you are seeing is the asset manager, the company hired by the bank to maintain it while it is on their books.

Hope this helps...

Nick