What Happens After a Foreclosure Sale?

You're not the only one going through this. Nationally, properties with a foreclosure filing were up 15% from a year earlier in Q2 2026, according to ATTOM Data Solutions.

Sale already happened, or coming up? Tell me what's going on and I'll connect you with someone who can help where you live. It's free.

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How long do I have to move out?

It depends on your state. After the sale, the new owner has to give you notice before you can be made to leave. In the 9 states where our records have a set number of days for the former owner, it runs from 3 to 30 days. Find your state below.

If you don't leave by then, the new owner can't just change the locks. In every state in our records, removing you takes a court order, and then a sheriff or marshal carries it out. Don't ignore court papers. Answer them, and call a legal aid office or an attorney right away.

Renting the home from the owner who lost it? You have more protection. Federal law generally gives a tenant with a real, arm's-length lease at least 90 days' notice after a foreclosure, and it doesn't cover the former owner or the owner's spouse, child or parent (Federal Reserve, FDIC).

Can I get paid to move?

Sometimes. A new owner who wants the house empty quickly may offer money if you leave by a set date and leave it clean. It's often called "cash for keys." It's a deal, not a right, so get the amount and the date in writing before you agree.

Can I get my house back after the sale?

It depends on the state. In 21 of the 51 states in our records, including D.C., the right to buy the house back ends at the sale. In 12, the law gives you time after the sale to buy it back, called a , and how long often depends on the property or the sale. In the other 18, that right exists only after some kinds of sale or in some cases, such as after a court-ordered sale but not a trustee's sale. To do it, you usually have to pay what the buyer paid plus interest and costs, not just what you were behind.

That window can be short and the rules are strict, so if you want to try, talk to a foreclosure attorney right away. Legal aid may help for free.

Will I still owe money after the sale?

You might. If the house sold for less than you owed, the gap is the leftover balance. Some states let the lender go to court for it, with a . Others limit that or don't allow it at all.

In our records, 18 states let the lender collect the leftover balance on a home loan, and 33 limit it. Common limits: none after a sale that happened without a court, none on the loan you used to buy the home, or a cap based on what the home was actually worth. See your state.

If a lender or collector contacts you about a leftover balance, don't ignore it and don't pay it on the spot. Ask for the numbers in writing, and have an attorney check whether your state lets them collect it at all.

Is there money left over for me?

There can be. If the house sold for more than what was owed on it, plus the costs of the sale, the extra is called surplus. It goes first to anyone else with a claim on the house, like a second mortgage, and then to you.

Surplus usually doesn't show up on its own. You generally have to claim it with whoever is holding it, often the court clerk or the trustee who ran the sale, and some states set deadlines. Your state guide says where the money is held and how to claim it, when our records have it.

Watch out for anyone who contacts you offering to "recover" your surplus for a big cut. You don't have to pay a company to claim money that's yours (New Jersey Division of Consumer Affairs). A legal aid office or an attorney can help you file the claim yourself.

Your state at a glance

These are the short answers from our state guides. Each state name opens the full guide, with the law behind each answer. Rules have exceptions, so check your state guide and talk to a local attorney before you count on any of them.

State	Buy it back after the sale?	Can the lender collect the rest?	Notice to move out (former owner)	Surplus money
Alabama	Yes; how long depends on the case	Yes	See your state guide	Ask the court or trustee
Alaska	In some cases	Generally not after a sale without a court	See your state guide	Yes, you can claim it
Arizona	In some cases	Limited	See your state guide	Ask the court or trustee
Arkansas	In some cases	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
California	In some cases	Not on some loans and sales	3 days	Yes, you can claim it
Colorado	No	Limited	See your state guide	Ask the court or trustee
Connecticut	In some cases	Yes	5 days	Ask the court or trustee
Delaware	No	Yes	See your state guide	Yes, you can claim it
District of Columbia	No	Yes	See your state guide	Ask the court or trustee
Florida	In some cases	Limited	No set notice	Yes, you can claim it
Georgia	No	Limited	See your state guide	Yes, you can claim it
Hawaii	No	Limited	See your state guide	Yes, you can claim it
Idaho	In some cases	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Illinois	In some cases	Yes	30 days	Yes, you can claim it
Indiana	No	Yes	See your state guide	Ask the court or trustee
Iowa	In some cases	Limited	See your state guide	Yes, you can claim it
Kansas	Yes; how long depends on the case	Limits based on the home's value can apply	See your state guide	Ask the court or trustee
Kentucky	In some cases	Yes	See your state guide	Yes, you can claim it
Louisiana	No	Limited	See your state guide	Yes, you can claim it
Maine	No	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Maryland	No	Yes	See your state guide	Ask the court or trustee
Massachusetts	No	Limited	See your state guide	Ask the court or trustee
Michigan	Yes; how long depends on the case	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Minnesota	Yes; how long depends on the case	Limited	See your state guide	Yes, you can claim it
Mississippi	No	Limits based on the home's value can apply	See your state guide	Ask the court or trustee
Missouri	In some cases	Yes	See your state guide	Ask the court or trustee
Montana	In some cases	Not after a sale without a court	See your state guide	Yes, you can claim it
Nebraska	In some cases	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Nevada	In some cases	Limited	3 days	Ask the court or trustee
New Hampshire	No	Yes	See your state guide	Ask the court or trustee
New Jersey	Yes; how long depends on the case	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
New Mexico	Yes; how long depends on the case	Limited	See your state guide	Yes, you can claim it
New York	No	Limited	10 days	Yes, you can claim it
North Carolina	Yes; how long depends on the case	Limits based on the home's value can apply	10 days	Yes, you can claim it
North Dakota	Yes; how long depends on the case	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Ohio	Until the court confirms the sale	Yes	3 days	Yes, you can claim it
Oklahoma	No	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Oregon	In some cases	Generally not after a sale without a court	See your state guide	Ask the court or trustee
Pennsylvania	No	Yes	See your state guide	Ask the court or trustee
Rhode Island	No	Yes	See your state guide	Yes, you can claim it
South Carolina	No	Yes	See your state guide	Ask the court or trustee
South Dakota	Yes; how long depends on the case	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Tennessee	In some cases	Limited	See your state guide	Ask the court or trustee
Texas	No	Limited	3 days	Yes, you can claim it
Utah	In some cases	Limits based on the home's value can apply	See your state guide	Yes, you can claim it
Vermont	No	Limited	See your state guide	Yes, you can claim it
Virginia	No	Yes	3 days	Ask the court or trustee
Washington	In some cases	Generally not after a sale without a court	See your state guide	Yes, you can claim it
West Virginia	No	Yes	See your state guide	Yes, you can claim it
Wisconsin	Until the court confirms the sale	Yes	See your state guide	Ask the court or trustee
Wyoming	Yes; how long depends on the case	Yes	See your state guide	Yes, you can claim it

"Without a court" means a sale run by a trustee under your loan papers, which is how many states foreclose. "Ask the court or trustee" means our records don't say how surplus works in that state, not that there isn't any.

What does a foreclosure do to my credit?

A foreclosure can stay on your credit report for up to seven years (Consumer Financial Protection Bureau, 15 U.S.C. § 1681c). Its effect fades as it gets older, especially if everything else you pay is on time.

When can I buy a home again?

It depends on the kind of loan you get next and on how you lost the house. These are the usual waits under each program's rules, counted from about when the foreclosure, deed in lieu or short sale was completed; each program names its own start date. A wait is a minimum, not a promise: the lender still checks your credit and income, and some lenders set longer waits of their own.

Next loan	After a foreclosure	After a deed in lieu	After a short sale	When the wait can be shorter
FHA	3 years	3 years	3 years	With documented circumstances outside your control, such as a serious illness or a wage earner's death, and good credit since. After a short sale, there's no wait if every mortgage and installment payment was made in the month it was due for the 12 months before the sale. Divorce and a job move don't count. (U.S. Department of Housing and Urban Development Handbook 4000.1, II.A.5.a.iii(I)-(J))
Fannie Mae	7 years	4 years	4 years	3 years after a foreclosure, or 2 after a deed in lieu or short sale, with documented extenuating circumstances: a one-time event outside your control that cut your income or raised your bills sharply. On the 3-year path, until 7 years have passed, the new loan must buy a home you'll live in, borrowing up to 90% of its value, or be a limited cash-out refinance. (Selling Guide B3-5.3-07)
Freddie Mac	7 years	4 years	4 years	3 years after a foreclosure, or 2 after a deed in lieu or short sale, with documented extenuating circumstances. On the shorter wait, and within 7 years of a deed in lieu or short sale, the new loan must buy a home you'll live in, borrowing up to 90% of its value, or be a no-cash-out refinance. These are Freddie Mac's rules for loans underwritten by hand. (Freddie Mac Guide 5202.1(d))
VA	VA sets its own rules; ask a VA-approved lender	VA sets its own rules; ask a VA-approved lender	VA sets its own rules; ask a VA-approved lender	VA's regulation sets no fixed wait. A past foreclosure doesn't disqualify you by itself; lenders judge it the way VA judges a bankruptcy: within 12 months, approval generally isn't possible, and within one to two years only if you've rebuilt your credit and the cause was outside your control. A foreclosure on a VA loan can also tie up part of your VA entitlement until the loss is repaid. (38 C.F.R. § 36.4340(g))
U.S. Department of Agriculture (guaranteed)	USDA sets its own rules; ask a USDA-approved lender	USDA sets its own rules; ask a USDA-approved lender	USDA sets its own rules; ask a USDA-approved lender	USDA's regulation sets no fixed wait. A foreclosure completed in the 36 months before you apply counts as serious negative credit that the lender must review and document; the lender may weigh whether the cause was temporary or outside your control. (7 C.F.R. § 3555.151(i))

Other loans set their own waits, so ask a loan officer which applies to you.

With Fannie Mae and Freddie Mac, a deed in lieu or a short sale comes with a shorter wait than a foreclosure; FHA treats all three the same. If the sale hasn't happened yet, see how a deed in lieu compares.

Will I owe taxes on the forgiven debt?

You might. When a lender forgives what's left on a loan, the Internal Revenue Service (IRS) generally counts the forgiven amount as income, and the lender may send you a Form 1099-C (IRS Topic 431).

A federal tax break for forgiven debt on the home you live in now covers only debt forgiven before 2026, or forgiven under a written agreement made before then (IRS Publication 4681, 26 U.S.C. § 108(a)(1)(E)). Other exceptions still apply: if you owed more than everything you owned was worth right before the debt was forgiven, or if the debt was wiped out in bankruptcy. And if you weren't personally on the hook for the loan, called a nonrecourse loan, a foreclosure is treated as a sale instead, with no forgiven-debt income.

A tax professional can tell you which applies before you file.

What this page relies on

Our state guides, built from each state's foreclosure laws, for every state answer on this page
Board of Governors of the Federal Reserve System CA 18-4, restoration of the Protecting Tenants at Foreclosure Act, and Federal Deposit Insurance Corporation Consumer Compliance Examination Manual V-16
CFPB: What impact will a foreclosure have on my credit report? and 15 U.S.C. § 1681c, the Fair Credit Reporting Act's time limits
HUD Handbook 4000.1, II.A.5.a.iii(I)-(J), FHA waits after a foreclosure, deed in lieu or short sale
Fannie Mae Selling Guide B3-5.3-07, waiting periods after a foreclosure, deed in lieu or short sale, and B3-5.3-08, extenuating circumstances
Freddie Mac Single-Family Seller/Servicer Guide 5202.1(d), recovery periods for manually underwritten loans
38 C.F.R. § 36.4340(g), VA credit standards after a bankruptcy or foreclosure
7 C.F.R. § 3555.151(i), credit rules for USDA guaranteed home loans
IRS Topic 431, Canceled debt, IRS Publication 4681 and 26 U.S.C. § 108
New Jersey Division of Consumer Affairs: Surplus Funds Scam

This is general information, not legal or tax advice for your situation.

Protect yourself from scams

People in financial distress are prime targets for fraud. Know these rules:

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Check before paying upfront for mortgage or debt relief. FTC rules generally bar covered mortgage-relief providers from collecting a fee before you accept a written offer from your lender or servicer, and bar covered telemarketed debt-relief services from collecting before they resolve at least one debt and you make a payment under the agreement. A lawyer may collect an advance fee for mortgage-relief services only under a narrow exception: the work must be part of the practice of law, the lawyer must be licensed to practice law in the state where the client or dwelling is located and follow that state's rules, and the money must stay in a compliant client trust account until earned or expenses are incurred.

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HUD-approved foreclosure-prevention counseling is free. Call 1-800-569-4287 or visit the CFPB counselor finder. Be cautious if someone charges for services that a HUD-approved counselor provides for free; verify the provider and written terms.

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Signing over your deed can cost you the house. "Equity stripping" and "sale-leaseback" scams trick homeowners into transferring their title, and you could lose your home permanently. A lawyer can review the papers before you sign.

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Ask your servicer what protections apply to your application and sale date. Regulation X generally bars the first foreclosure notice or filing on a covered principal-residence mortgage until the loan is more than 120 days delinquent, subject to exceptions. A complete loss-mitigation application can restrict specified foreclosure actions, but the protection depends on when it was received and does not necessarily stop every step. If a company claims only it can "save" your home, verify through your actual servicer.

Report fraud: CFPB · FTC · your state attorney general's office.

Who made this

Ross Kilburn

Last checked Sep 30, 2026

Former COO of Ark Law Group, a foreclosure defense firm serving five states · founder of Seattle Short Sales · author of Short Sale Your Home

I built American Default Research to track household financial distress with public data — and to make sure the people behind the numbers can find real help. Every guide on this site is written to be clear and useful, sourced from federal agencies, and free to use. No ads, no paywalls, no data sold.

About this project · Our methodology