HomeRecovery.org Guide
Foreclosure Prevention websites are easily found online. Homeowners struggling with payments, loss of income and more can find
dozens of solutions with a click of the mouse. However; without the proper research homeowners could end wasting precious time and money.
Below we have provided a basic overview of the foreclosure process that may help you get off on the right track.
Foreclosure Information Guide
Foreclosure is a complicated legal process that can take years to process. Knowing your legal rights and seeking foreclosure assistance can be the difference between keeping and losing your home.
You are not in this alone. In September of 2010 1 in every 370 homes received a foreclosure notice. Mounting debt, loss of income and job loss are the main reason homeowners are falling behind on their mortgage. Homeowners that fall behind on their mortgage and are facing foreclosure should research the foreclosure process in their state.
Below we have provided a basic overview of the foreclosure process. You have options no matter how far you are into the home foreclosure process. If you need assistance please contact us directly for options that may help you prevent foreclosure, lower payment, rate & get a fresh start.
Types of Foreclosure
There are two main types of home foreclosure. The first is foreclosure by judicial sale. This is available in every state and is the required method in many. It involves the sale of the mortgaged property done under the supervision of a court, with the proceeds going first to satisfy the mortgage, and then to satisfy other lien holders, and finally to the mortgagor. Because it is a legal action, all the proper parties must be notified of the foreclosure, and there will be some sort of judicial decision, usually after a short trial.
The second is a foreclosure by power of sale, involves the sale of the property by the mortgage holder not through the supervision of a court. Foreclosure by power of sale is faster way of foreclosing on a property than foreclosure by judicial sale. The majority of states allow this method of foreclosure. Again, proceeds from the sale go first to the mortgage holder, then to other lien holders, and finally to the mortgagor.
The Home Foreclosure Process
The foreclosure process typically takes 6-8 months but during the recent foreclosure crisis foreclosures have been sitting on the books for a year or more. If you have kept up with the news lately you may see reports of a nationwide foreclosure freeze. As of 11-10-2010 every lender has started processing foreclosures again in most states.
Pre-Foreclosure
Pre-Foreclosure is described as the period where you miss one or two mortgage payments. By issuing a Demand Letter lenders can demand complete and immediate payment of the loan, plus late charges, penalties, and legal fees. If you do not pay the total amount due withing 30-days the lender will continue on with the foreclosure process. This is your time react and correct the problem before it gets out of hand.
Notice of Default
If you have not paid your mortgage in over 90 days then legally you are foreclosure and the legal process will start. At this point in the foreclosure process the bank, an attorney, or local sheriff issues a Notice of Default (NOD) to the homeowner as a certified letter. The NOD outlines homeowner debt and last-ditch remedies for reinstating the mortgage. Meanwhile, a notice of foreclosure is recorded with a local government agency, the debt is publicly announced in a local newspaper, and a date selected for a foreclosure auction. Issuance of the NOD also triggers opportunities for investors and homeowners to negotiate short sales, which often prove beneficial.
The Auction
The auction is the final part of the foreclosure process. The lender will auction the home off at a discount to lessen the amount of their loss. After bidding is complete, a purchase contract is issued to the high bidder. If no bids are received higher than the opening bid, the lender purchases the property and puts it back on the market. This is something the lender wants to avoid so understanding your options prior to this stage of foreclosure is crucial.
If you want to learn more about your rights as a homeowner please contact us directly.