A foreclosure does not happen without warning. Actually it will take about 6 months from your first missed payment. Without exception there is a legal process that must be adhered to. In this article we explain the stages of an average foreclosure process to assist you in determining if you run the risk of foreclosure.
Have you missed a mortgage payment?
Should you be behind on your mortgage payments then you are definitely at risk of your lender foreclosing. Ideally you will get caught up and pay on time. That could be easier said than done however you really should make it a high priority and not avoid the situation. If you would like more honest foreclosure information go to Loan-Modification-Masters.com to find out how you can get help.
You haven’t skipped a house payment but fear you might?
Was your financial condition changed due to a mortgage payment being increased, losing you job, divorce, expensive health issues, increase in taxes or another reason?
Is your unsecured credit debt becoming out of hand?
Are you using your credit card to purchase groceries?
Has it become hard to pay all your monthly bills on time?
If it is becoming more difficult to pay your house payment each month you need to seek professional assistance. You can find many places to get advice for debt and financial problems. Not many people truly think they will lose their home, they think they have more time.
Though the time-line differs from state to state, in essence this is how a foreclosure goes:
The first months’ payment missed – your bank will contact you by letter or call. You need to speak to them and always be polite and patient. This is the time to find a foreclosure specialist to find out what legal foreclosure programs are an option for you.
Second month missed payment – your mortgage company is probably going to start calling you to discuss why you have not been making your payments. It is crucial that you accept their calls. Talk to the lender and explain your circumstances and how you are attempting to change it. At this time, you could still be able to give them one payment to prevent yourself from falling 3 months behind.
A third payment missed – after a third payment is missed, you are going to receive a letter from you bank stating the total you are behind, and that you only have thirty days to bring your loan 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 day, the mortgage company will likely start foreclosure proceedings. They are unlikely to 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.
Fourth month missed payment – now you are nearing the end of time stated in your Notice to Accelerate or Demand Letter. When the 30 days comes to a close, if you haven’t paid the full amount due or worked out arrangements you will be referred to your lender’s lawyers. You will incur all lawyer expenses as part of your delinquency.
Next comes a Public Trustee’s or Sheriff’s Sale – the lawyer will setup a Sale. This will be the actual day of foreclosure. Probably you will be informed of the sale day by a letter, a notice is taped to your door, and the sale could be listed in a local paper. The period between the Demand or Notice to Accelerate Letter and the Sheriff’s Sale differs in each state; the sale can be as soon as 2-3 months. This is not your move-out deadline, however the end is near. You have until the day of sale to make arrangements with your mortgage company, or come up with the entire amount due, along with lawyer fees.
Redemption Period – once the sale is over, you could have a redemption period. You will be notified of the time frame on the same form that your state uses for your Sheriff’s or Public Trustee’s Sale.
Important: Remain in contact with your mortgage company and seek out assistance as soon as you can. All schedules are an estimation, and differ according to your state and your lender.
