Foreclosure Process Overview

Is your home’s impending foreclosure causing you stress? A foreclosure advisor can help you handle negotiations more effectively.

The foreclosure process can vary from state to state. Knowing what it involves will enable you to make the right decisions at the right time. It is important to realize that once the process begins you will need to act quickly. We can help access your options and advise you on which one might work best for you. Contact us   to learn about a speedy and effective way to save your home.
 
What does the foreclosure process involve?

A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold. Here is a general time schedule that the foreclosure process follows.

• Day 16-30 of a missed a payment usually means a late charge is assessed to your (the borrower’s) payment.
• Month 1:  You are in default and the foreclosure process speeds up. After one month, some lenders will allow you to make a partial payment of the past due amount; others will insist that everything be brought current including late charges.
• Month 1 - 2:  You will receive a "demand" or "breach" letter stating your default and giving you 30 days to resolve the outstanding amount. You can also expect regular phone calls from mortgage collectors. Your lender may offer you a repayment plan or a mortgage loan modification .
• Month 2 - 3:  The lender will send a ‘Notice of Default’, usually by certified mail. You will be given a time period to pay all past due amounts. Collection costs will probably be added to your late fee amount.
• Month 3 - 4:  Your case will be moved your lender’s loss mitigation or foreclosure department. Legal services will be retained by your lender to handle the foreclosure proceedings. Depending on which state your home is located in, the Notice of Default may be recorded at the local courthouse and published in the local newspaper.
• Month 5 – 1 Year:  A ‘Notice of Trustee Sale’ is filed and your home is scheduled for a foreclosure sale or auction. This time range varies due to individual state laws and requirements. States with judicial foreclosures can sometimes extend this period to a year or more. Some states offer a ‘redemption period’ after the foreclosure sale to give you time to purchase the property. In most cases the local sheriff’s department will ask you to leave the premises.

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