Timeline for Foreclosure
Real Estate - Get In The Know
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Timeline For Foreclosure
Foreclosure is one of the most used words in the country today. What can be such a terrible situation for some is turning into a moneymaking opportunity for others. You are not powerless when you run into trouble with your mortgage. You do have options. Know the timeline for foreclosure. There are two main stages of foreclosure, pre-foreclosure and foreclosure. From beginning to end the foreclosure process can take six months or more.
The pre-foreclosure period consists of you missing your mortgage payment and the bank doing everything it can to contact you and to get you to pay. This can consist of sending letters and making telephone calls. At this point you have the greatest chance of negotiating with your lender and coming up with alternate payment plans. If you have equity in your home you may be able to refinance your property in foreclosure. After your third missed mortgage payment things start to get a little more serious. The lender can now move into the formal foreclosure process where they are exercising their legal right to take back your home. At this point the lender will exercise their right of acceleration and will demand that the full mortgage is paid along with late fees and legal fees.
These next steps of the timeline for foreclosure take on a little more formal note. The lender will send you a formal, certified letter of foreclosure. This is served by a paid processor or the local sheriff. Depending on local laws the lender will publish a notice of foreclosure in the paper and you will be sent a court date. At this hearing the court will issue a foreclosure order which gives the bank the right to sell your home. There is another waiting period in which you can try to make arrangements with the lender. Keep in mind that the bank does not want to foreclose on your home because they lose money by having homes on their books.
After the specified waiting period, your house can be put up for auction. Anyone, even you, can bid on the property at auction, but you must have the minimum down payment specified and the ability to acquire financing after the sale. In some states, after the auction is completed there is still a period of redemption during which you can buy back the home if you can get financing. If that is not possible then ownership transfers over to the winning bidder. If you, the previous homeowner still has not left the home, the new owner can then file to have you evicted.
This is a general timeline for foreclosure. Your timeline depending on your state or county may be different. Communicate, communicate, communicate. There are many instances of homeowners going through the steps of foreclosure and made no attempt to contact the lender to arrange alternate terms. You should try to exhaust any and all options that you have before you allow a foreclosure to take your home. E