What Happens During Foreclosure
Real Estate - Get In The Know
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What Happens During A Foreclosure
What happens during a foreclosure can vary from state to state and lender to lender. What you need to keep in mind is if you keep communication open with your lender you will find this process much easier to go through or avoid. This article will give you some information about the foreclosure process and direct you to places where you can get additional assistance.
The time between when you miss your first mortgage payment until the time you must vacate the premises after the foreclosure auction can be six months or more. Within this timeframe you have plenty of opportunities to discuss alternate arrangements with your current lender, or find another lender who can lend assistance. If you do not make your mortgage payment by the late date, your mortgage company will send you a courtesy reminder letter. After your second missed payment the phone will start ringing. Your lender will start calling you. Understand that your lender wants to help. They do not want your home because they are not in the home business. Banks make their money off of the interest on the home loan not by having foreclosed homes on their books.
Even after just missing one payment, if you know there may be a problem, you should start talking to your lender about making alternate arrangements. If you can get thru, instead of speaking to the normal customer service representative, call or write your lender's loss mitigation department. These are the people that can help you with your situation. The timeline for foreclosure can change based on what the loss mitigation department works out with you.
If you have not been taking steps to stop the process or working with the loss mitigation department, and in some instances even if you have been, after 90 days your lender can exercise its right to take the property back. They will send you a letter notifying you of their intentions. At this point your options start to dwindle but there still are some. You should contact a lawyer or more assistance.
If you don't take any proactive measures to stop the foreclosure, within the next three months a foreclosure auction sale will be scheduled and the property will be sold to the highest bidder. Up until the time of the sale you still have the option of paying back all of the past due amounts plus fees to bring your mortgage current and stay in your home. Once the auction is concluded it is at the discretion of the new owner to give you the amount of time to vacate the premises.
Know what happens during a foreclosure so you can be prepared. E