Are you Facing Foreclosure? Even if you aren't facing it yet, you might be suffering from financial difficulties that may result in it! If so, now is the time to familiarize yourself with the process. Foreclosure can be scary for homeowners, but you can protect yourself by knowing what'll happen, what you can do, and your rights.
Mortgage lenders are often banks and must and will provide you with proper notice. In fact, you will receive multiple written notifications and telephone calls. Foreclosure should not come as a surprise to you. Neither should the eviction notice that may arrive later. As soon as you start receiving calls or letters from your financial lender, it is very important for you to take immediate action. As for what action you should take, that leads to another important fact.
Banks want to avoid Foreclosure just as much as you do; many homeowners are surprised to learn this. Many times, financial lenders lose money when selling a foreclosed property. For that reason, you should speak directly with your financial lender. When doing so, have this meeting in person and meet with a high-ranking official, such as the chief loan offer or the branch's president.
Since banks want to avoid Foreclosure whenever possible, it's essential to go into detail about your financial situation. Are you only experiencing temporary problems? For example, did you suffer an injury that will put you out of work for a few months?
Were you laid off but actively looking for a job now? If so, your financial lender may be willing to work with you. Can you prove that you intend to get your mortgage back in good standing? If so, your lender may temporarily accept smaller payments.
As for the foreclosure proceedings, the process will depend on the state where you live. Unfortunately, this is a fact that many facing Foreclosure do not know or do not take into consideration. Suppose you intend to seek professional help from a housing counselor or attorney. In that case, you should choose a professional familiar with your state's foreclosure laws, as they vary.
For example, judicial and non-judicial foreclosures are permitted by law in some states. A judicial foreclosure is where the lender must file an official complaint against the borrower, which would be you. The local courts must approve this complaint. At this point, the courts may give the borrower one more opportunity to pay the amount in delinquency. If not, the property will be sold.
As for non-judicial foreclosures, financial lenders must have entered a specific clause in the mortgage agreement. This clause states that the borrower, which would be you, authorizes the sale of the property when delinquency occurs on payment.
Typically, non-judicial foreclosures are not used often, and some states even prohibit them. That is why it is essential to know all of your state's foreclosure laws. When the foreclosure process has started, now is the time that you should start looking for other arrangements.
Ultimately, your only option may come down to having to move. And although you are only required to leave your home once the lender or new property owner serves you an eviction notice, it is a reality that is best addressed through early planning.
To recap, foreclosure laws vary by state; banks want to avoid Foreclosure, and multiple notices will be sent. For that reason, Foreclosure should never come as a surprise. If you would like more information on foreclosures, you can contact a HUD (United States Department of Housing and Urban Development) approved counselor, your lender, or an attorney, but please do so right away.