Lately, many of my readers have been writing me about one question that always seems to be in the head of homeowners facing the possibility of foreclosure; is about the mortgage foreclosure process, how does it work? Foreclosure can be an intimidating and scary process, so it is important to understand the steps and course leading up to this event.
If you are serious about saving your house and living in it for a long time, you need to know this information.
Even though laws surrounding foreclosures can be very complex and vary state to state, many of the steps are simple enough to understand.
This article will walk you through the mortgage foreclosure process and explain each step to you.
Keep in mind that, though the steps are similar, time limits and the amount of days each step will take vary from state to state.
The mortgage foreclosure process starts when you miss the first payment.
The lender typically notifies you with a late payment notice a few weeks after your first missed payment.
The mortgage company will often call you and let you know you are in default soon after this.
As missed payments continue, the frequency and tone of these calls and notices will increase.
At this step, it is important to talk to your lender at this stage, as they may have a plan for hardship or chances for you to re-negotiate payments.
Lenders will often file for foreclosure after three months, though some will wait longer.
This will trigger a bureaucratic mortgage foreclosure process that will result in a foreclosure notice or a foreclosure summon being delivered to you.
At this point, you may choose to attend to a court hearing with your local Circuit Court.
There is usually a time-frame of about 20-30 days to do this, though check with your state to get the exact amount of time you have.
Even if you require a court hearing, it is unlikely that you will succeed, as you have probably reached this point by neglecting payment, which is a violation of your mortgage contract, so the mortgage foreclosure process will go on.
If you do not request a court hearing, the court will rule in favor of the lender, and they will be able to sell the property at an auction.
At this point, things can move quickly, sometimes within a week.
Once the house is sold, you have between 15 and 30 days to move out.
If you do not, you will be forcibly evicted by the sheriff of your community, and they will put your belongings on the street.
Foreclosures, especially if they reach this point, can be a traumatic and difficult experience for families and individuals.
If you have reached this stage, you are in a very serious situation.
For many homeowners sometimes is difficult even to find a place to put their belongings or where to live.
The good news is that options to avoid or delay foreclosures exist.
Most people do not know what to do when facing foreclosures and think they have no choice if they have missed payments.
If you are prepared with information, you can delay the mortgage foreclosure process for years, even without the help of lawyers or non-profit agencies.
You can do this with several tricks and tips hidden by the banks, and you can do it without making mortgage payments, so even if you are unemployed or have not income at all, you still can save your home if you know how to do it.