What Happens After A Foreclosure Sale


If you are a tenant living in a property sold in a foreclosure sale, then the creditor or buyer must file a claim either for ejectment or possession to evict you. After a claim is filed, it can take as little as a couple of days, or as long as, a month or two before the tenant is forcecd to leave the rental property.

After the foreclosure sale, you should prepare to move out. Although if you are unable to afford alternative housing, you could stay in the property until you get evicted. A lender can evict you by requesting a writ of possession from the Superior Court. The writ of possession allows the lender to evict you in a matter of weeks. It is served by a Sheriff. A buyer, unlike a lender, must file a claim for ejectment in the Superior Court to evict you. A buyer cannot file the claim for ejectment until after the deed is transferred to the buyer. Usually, the ejectment process takes months and is much slower than the writ of possession.

Deficiency Claims

The original owner is entitled to any surplus of the sale proceeds, after the mortgage, interest and costs of foreclosure are paid. However, if the sale proceeds do not pay off the existing mortgage on the property plus costs and the foreclosure lawsuit did not sue on both the mortgage and note, then the lender must file a separate lawsuit on the note to obtain a deficiency judgment. A deficiency judgment is a final court ruling in favor of a creditor for the balance of the debt, interest and costs that are not paid off by the sale of the real estate. If the court grants a deficiency judgment against you, then you would have an obligation to pay the amount of the judgment to the lender.

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