Q: Once a bank has issued an acceleration notice on a mortgage, how long does it take before a person must leave the propery?

Real Estate Question of the Day

A: An acceleration notice just informs the mortgagor that the debt is due, immediately. It is not a foreclosure notice, and it is not an eviction notice. After acceleration, if the debt isn't brought current, the lender can file a foreclosure action; and in that case, the lender must follow the specific rules in the foreclosure law. These rules usually require notice of the foreclosure sale be published several times in a newspaper, notice to the property owner and other secured parties, and might even require notice to tenants.

At the foreclosure sale, if the lender bids in the mortgage balance, the lender becomes the owner. In some states, there is a redemption period, meaning the former owner can "buy back" the property from the lender by paying off the debt. Rdemption periods vary. However, if there is no redemption period and the mortgage lender owns the house, the former mortgagor has no right to remain in the house from the day of the foreclosure sale. If he stays in the house, the lender must use legal means to evict him. That means filing an eviction notice, which again requires notice to the occupant and legal process. Some jurisdictions are fast with evictions (Virginia) and some are slow (DC). So it depends on where you live. The basic rule is you have no right to occupy the property from the moment it is sold at the foreclosure sale.