In foreclosure? When should you leave your house?

The foreclosure process is a very long process. Today, with so many homes in foreclosure, the court system is being taxed to the limit and cases are languishing even longer than normal. The foreclosure process takes many months and in some places will last over a year.

If you are in foreclosure, then by definition you are having monetary problems (otherwise you would've paid your mortgage). Instead of renting a house right away and spending money in moving, use this opportunity to save some money for your eventual move. Moving out right away is not going to earn you any points with the lender. In fact, it may be to its advantage to have you remain in the house if you are at least maintaining it in good condition.

You should remain in your home as long as you can. Please note, that the length of the foreclosure process varies by state, so in some states your stay will be longer than others and consulting with a lawyer will always be worth your while. Your county courthouse and lender will let you know when it's time to get out. Hopefully, by that time you will have saved enough money to move out.