Foreclosure does not happen over night. In fact it takes around 6 months from the first missed payment. Without exception there is a legal process that must be followed. In this article we chronicle the stages of a typical foreclosure process to help you to determine if you are at risk of foreclosure.
Have you missed your house payment?
If you are behind on your loan payments then you are definitely at risk of a foreclosure. The best thing you can do is catch up and pay on time. This could be easier said than done however you truly should make it a top priority without avoiding the situation. If you want more foreclosure information head over to Loan-Modification-Masters.com to find out how you can get help.
Haven’t missed a mortgage payment but afraid you may?
Has your financial situation altered because of a mortgage payment being increased, losing you job, getting a divorce, medical expenses, increase in taxes or another reason?
Is your credit card debt becoming out of hand?
Are you using your bank card to buy groceries?
Has it become hard to pay all your monthly bills in a timely manner?
If it is becoming more difficult to make your mortgage payment every month you need to seek professional assistance. You can find many places to receive advice for debt and financial problems. Not many people truly believe they will lose their house, they think there is more time.
Though the time-line differs from state to state, in essence this is how a foreclosure goes:
You miss your first payment – your lender will get in touch with you by letter or phone. You should talk to them and always be polite and patient. Now it’s time to find a foreclosure specialist to learn what foreclosure programs are an option for you.
Second month missed payment – your bank is likely to begin phoning you to discuss the reason you have not made your payments. It is important that you take their calls. Speak with the mortgage company and inform them of your circumstances and how you are attempting to change it. At this time, you still may be allowed to make a single payment to keep yourself from falling three months behind.
Miss a third one – once the third payment is missed, you will receive a letter from you lender informing you of the amount you are behind, and that you only have 30 days to bring your mortgage current. They call this a “Demand Letter” or “Notice to Accelerate”. Should you not pay the specified amount or make some type of arrangements by the stated date, the mortgage company could start foreclosure proceedings. Chances are they will not take less than the total owed without arrangements being made if you receive this letter. There is still time to work something out with your bank.
You miss your fourth payment – now you are nearing the end of time given in your Notice to Accelerate or Demand Letter. Once the 30 days comes to a close, if you have not paid the full amount delinquent or made arrangements you will be referred to your bank’s attorneys. You will incur all lawyer fees along with your delinquency.
Now you can expect a Sheriff’s or Public Trustee’s Sale – the lawyer will set up a Sale. This will be the actual date of foreclosure. You may be notified of the date by mail, a notice is put on your door, and the sale may be advertised in your local paper. The time between the Notice to Accelerate or Demand Letter and the Sheriff’s Sale differs in each state; it may be as soon as 2-3 months. The Sale isn’t the move-out date, however the end is near. You have until the date of sale to make arrangements with your lender, or come up with the full amount owed, along with attorney expenses.
Period of Redemption – once the sale is over, you could have a redemption period. You will be informed of your time frame on the same notice that your state uses for the Sheriff’s or Public Trustee’s Sale.
Important: Stay in contact with the bank and ask for help as early as possible. All time frames are estimated, and differ according to your state and the lender.
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