Foreclosure begins once the homeowner becomes 90 days behind on his/her scheduled payments. The lender can refuse payments from a homeowner once he/she falls 1 payment behind if the homeowner attempts to pay less than the total amount due to bring the loan current. Many homeowners who experience hardships resulting in 1 or 2 missed payments have a very difficult time bringing the loan current within the 90 day period. If the homeowner fails to bring the loan current by the 90th day, the lender has the right to begin foreclosure at that time. Often, a lender will give the homeowner the option to make double payments until the loan is current and all fees and interest are paid.

WHAT ARE THE STAGES OF FORECLOSURE?

Notice of Default (90 Days) – Notice of Sale (21-25 days)  – Trustee Sale –
Bank-Owned (If Unsold) * 

*The above time frames may vary according to your state laws, your lender, and your history.

WHAT CAN I EXPECT ONCE FORECLOSURE BEGINS?

COLLECTION CALLS AT HOME AND AT WORK: The homeowner may find him/herself receiving numerous daily phone calls from the lender’s collection department, attempting to collect the arrears. These are collection agents calling. These calls can be very frustrating for homeowners and the demands being made on the homeowners are steep and unsympathetic. Many homeowners we hear from report that they are unable to get cooperation or follow-through from the collection department. Many homeowners experience collection calls being placed to their family members as well. If you are not able to meet their demands to pay the arrears, your case will then be given to a trustee attorney representing the lender.

LATE FEES, INTEREST & PENALTIES: Every day that passes while you are in default results in additional charges to your account in the form of late fees, interest, finance charges and penalties. This means you will be required to pay more and more money to bring your loan current if you don’t take action to stop the process.

ATTORNEY FEES: If you fail to bring your loan current after receiving a notice of default, your lender will give your case to an attorney. Trustee attorneys attempt to collect the debt you owe your lender. They send you letters in the mail detailing the amount you owe to stop foreclosure. These totals include their legal fees, which can be more than $1,000.00 for the first letter. Failure to pay the full amount of the arrears and attorney fees will result in the attorney sending you more letters with additional fees being added to your bill each time. Legal fees can total several thousand dollars in addition to the amount you owe on your loan. Failure to pay the full amount by the date the attorney demands it from you will result in an auction date being set for your home. If you fail to pay the full amount due before the auction date, the attorney has legal right to sell your home on the auction date and keep any of your equity as his/her profit.

AUCTION DATE PRINTED IN NEWSPAPER: Once an auction date is set it is posted in your local newspaper. This can be an embarrassing public stage of foreclosure for the homeowner as the pending sale of their home is announced to their friends, neighbors, relatives and co-workers.

TRUSTEE SALE: If you fail to pay the full amount due to bring the whole loan current along with all fees due including all attorney fees, your home will be auctioned on the date set. If your home is sold, the trustee attorney is entitled to any and all of your equity as his/her profit. You will then have anywhere from a few days to a few weeks to a few months to move you and your family out of your home. In some cases you may have the right to remain in the house for several months before you are forced to leave.

THE HARSH REALITY OF FORECLOSURE

-You lose your home.
-You lose your equity.
-You damage your credit.
-You seriously reduce your ability to qualify for another mortgage.
-You lose your neighborhood when you are forced to leave your home.
-You will have to pull your children out of their school if you relocate to a new community.

HOW DO I PREVENT ALL OF THIS FROM HAPPENING TO ME?

The most important thing you can do to avoid foreclosure and the possible loss of your home is to make your monthly mortgage payments on time and in full every month. If you miss 1 or more payments, you must do everything possible to bring your loan current (within 90 days) to avoid foreclosure. If you are not able to bring yourself current, then attempt to negotiate a payment plan with your lender that will allow you to pay your regular payment and an additional amount for 3-12 months to pay back the arrears. If you are unsuccessful in negotiating a plan that you can afford, you must take a pro-active approach and seek expert assistance to leverage your hardship rights and achieve a solution to your foreclosure before it’s too late.

IF YOU HAVE BEEN UNSUCCESSFUL IN PREVENTING OR STOPPING THE FORECLOSURE OF YOUR HOME CLICK HERE to contact us now and take the critical next step.