the most common mistake homeowners do is ignoring that they have a problem to deal with. We cannot stretch it enough how's the importance of communication with your Lender is primordial!
Stopping foreclosure starts as soon as when a borrower fails to make 1 or 2 monthly mortgage payment; The lender may consider a repayment plan at this delinquency step if the borrower financial hardship was temporary. The borrower can also check to refinance the loan at a better rate and terms.
After 90 days or more without payment, the loan default. At this point the lender will not accept any partial payment and will call the loan off by filling a notice of default (NOD). Depending of the State where the property is, it can take more or less between 30 to 60 days to foreclose.
Even after receiving a NOD, a borrower can still negotiate with the lender to have a Loan Modification, a Short Sale, a Forbearance, to surrender voluntarily the title of the property (Deed In Lieu of Foreclosure), get someone to assume the loan or filling Bankruptcy after consulting with an Attorney.
Foreclosure Law differe from State to State. In a non Judicial State, the Lender will schedule a Trustee Sale if no agreement has been reached with the homeowner who defaulted on a loan.
A borrower with a Mortgage Insurance (MI or PMI) can aslo contact the mortgage insurer for other solution provided by them to help him/her avoid foreclosure. Depending of the borrower situation, a Mortgage Insurance company may extend a low or no interest loan to the borrower to cover the arreas or work with the Lender to facilitate a Short Sale of the property. This is called Claim Advance.
A Notice of Trustee Sale (NTS) is publish in a news paper where the property reside for 4 weeks. If no one constest the sale, the property will then be sold for the highest bidder on the steeps on the County Court House. When the auction fail to provide the note holder with the amount they were looking for, the Lender will step in and buys back the property. At this point it become a Bank Owned or Real Estate Owned property (REO).
Once again, depending of the State where the property is, a borrower may or may not have a right of redemption. For a state like Georgia where no redemption rights exist, the foreclosure process is complete for the home owner after the Trustee Sale.
WARNING: Never sign over your deed to someone or a company without making sure that your obligations to repay the loan are satisfied. Talk to a Real Estate Attorney before making a DILF, Loan Assumsion and filling Bankruptcy.
Watch the video on this page to learn more about tactics scammers use to prey on you. Disregard and report any one who tells you to not communicate with your Lender.
Fill out the contact form on your right to receive your FREE, no obligation, no fine prints, confidential report for a full version on how to avoid foreclosure and what are your options even when your Lender doesn't want to work with you.