Want To Learn More About Foreclosure Now?
We have created a free online guide to help homeowners just like you find out your options. You can also check our resources page to learn more about avoiding this.
You are not the first person to go through such a situation… and will not be the last. So, do not feel ashamed. It happens.
The best thing you can do right now is to educate yourself on your options. For some homeowners selling your house is the best option. If you need to sale your house fast, please click the link and complete the short form and someone will contact you within 24 hours. If you are not ready to sell, please continue to read the below information regarding the foreclosure process.
How Does Foreclosure Work?
Foreclosure is when the lender (Bank) takes back the property when the homeowner fails to make payments on a mortgage. The foreclosure process differs by state. Some states the banks are required to file a suit (judicial foreclosure), in other states, the lender can foreclose on the property without going to court (non-judicial foreclosure). However, the lender is required to provide written notices under the “power of sale” clause in the mortgage or deed of trust. Therefore, it is important for you to open all mail you receive from your lender and stay in communication with the lender during this process.
Foreclosure processes require that the borrower(s) be notified regarding the proceedings and generally involve giving public notice. State laws on giving notice and scheduling a foreclosure sale vary. Some states may also provide you with the right to mediation prior to foreclosure. Be sure to read your mail and any legal notices carefully and act promptly on notices you receive.
If I have missed mortgage payments; how long will it take before I face foreclosure?
The foreclosure process generally cannot start during the first 120 days after you are behind on your mortgage. Once the mortgage servicer begins the legal process, the amount of time you have until the actual foreclosure sale (auction) varies by state.
If I cannot pay my mortgage loan, what are my options?
First, call your mortgage services. The number can be found on the back of your mortgage statement, their website, or in the loan coupon book. When you speak to your mortgage services, be prepared to discuss the following:
- Why are you unable to make your mortgage payment?
- Is the problem temporary or permanent?
- Be prepared to discuss details about your income, expenses and assets (cash in checking and savings accounts, 401K, etc.…)
Options that might be available to you are the following:
Be on the look out for the following foreclosure scams:
- Someone asks you to pay upfront for their help.
- They guarantee to get the terms of your mortgage changed.
- They guarantee you will not lose your home.
- Ignore request to sign over the title of your house.
- Do not send payments to anyone other than your mortgage company.
- The company offers to do a forensic audit.
- The company says they are affiliated with the government or uses a logo that looks like a government seal.