What happens after a foreclosure sale?

After a foreclosure sale, the homeowner has lost all rights to the property. The previous owner is no longer responsible for mortgage payments and is required to vacate the premises immediately. The new owner can then take possession of the property. In the state of Texas, the lender or mortgage servicer must give the borrower a written notice of sale before it can proceed with the foreclosure. This notice must be posted on the premises at least 21 days before the sale. After the sale, the lender must offer the borrower a post-sale deed of trust and a “right of redemption,” which gives the borrower the right to reclaim their property within certain time limits and for a certain fee. If the borrower does not take advantage of the right of redemption, the lender or mortgage servicer will issue a deed to the new owner. The deed will transfer ownership of the property to the new owner, and they can officially take possession. The new owner can then use the property for any reason they choose, provided they follow all local zoning laws. If the former homeowner is still living on the property, the new owner must serve them with an eviction notice. This will give them time to vacate the premises or settle any outstanding debts with the lender.

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What happens after a foreclosure sale?

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