The Foreclosure Process

October 21, 2008 · Posted in Mortgages 


If you are faced with the dismal prospect of losing your home, you will want to take any action necessary to keep yourself from becoming homeless. To fight a foreclosure, it is vital to understand how the process works. As the process of foreclosure varies from state to state, homeowners need to be aware of not only how the process works, but also the timeline involved. When you are more familiar with the process, you can make a better decision on how to stop your foreclosure.

The first time you miss a mortgage payment by just a day, the foreclosure timeline begins, although no penalties are incurred. You will be given 16 – 30 days to make your payment. A late charge is added at this time, and you will most likely receive a phone call from the lender inquiring as to why the payment is late.

After 16 days, you will have a late fee added to your payment. If you have still not made the payment after 30 days, you will be considered in default. This means that you are really late on this payment now, and if you don’t pay it soon, the lender is going to take your home away from you. Depending on your lender, you will either be allowed to make the late payment in installments or you will be ordered to make the payment in full immediately. In certain states, once you are 60 days late, a filing of Notice of Default will be made. However, between 45 to 60 days, you will receive a “breach” letter which explains the terms of the mortgage in writing. This also gives you 30 days to resolve it. You can expect to hear from your lender daily during this time. You may be offered some payment options. If you are, you should take them.

Days 60 to 90 will bring you a notice of default. There will also be collection fees added to the already existing late fees. The loan will be handed over to the lender’s legal department, where documents will be sent to a local attorney to begin foreclosure. If things are still not resolved by 150 to 415 days, there will be a Notice of Trustee Sale filed. This means your home will be scheduled to be sold.

A foreclosure is a legal process and guidelines are set that must be met. After the case is turned over to the local attorney, there must be a public notice of the foreclosure placed in the local papers. As the homeowner, you have every right to try to stop this process. If you haven’t done so prior to this, now is definitely the time to seek the advice of your own attorney.

In the last part of the process, some states have laws that allow you the chance to buy your property if you can. By this time, though, you will most likely have been made to vacate your home by the local sheriff’s department, if you have not been able to make up the payments.

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