+ How does the foreclosure process work?
Few people think they will lose their home, they think they have more time. Here's how it happens. Note: Timeline varies by state.
* First month missed payment – your lender will contact you by letter or phone. Manning Law Office can help.
* Second month missed payment – your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take their phone calls. Talk to your lender and explain your situation and what you are trying to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind. Manning Law Office can help.
* Third month missed payment – after the third payment is missed, you will receive a letter from you lender stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a "Demand Letter" or "Notice to Accelerate". If you do not pay the specified amount or make some type of arrangements by the given date, the lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender. Manning Law Office can still help.
* Fourth month missed payment – now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 30 days ends, if you have not paid the full amount or worked our arrangements you will be referred to your lender's attorneys. You will incur all attorney fees as part of your delinquency. Manning Law Office can still help you.
* Sheriff's or Public Trustee's Sale – the attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states it can be as quick as 2-3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees.
* Redemption Period – after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your state uses for your Sheriff's or Public Trustee's Sale.
+ Can I delay the foreclosure process?
Sometimes, if you cannot work with the solutions that lenders are offering, you can utilize tactics of delaying the process. You can seek legal advice, which will give you all the assistance that you need to help delay lenders in the filing process so that you can find a solution. Once you've delayed the process, you can check out your options for refinancing, mortgage assistance programs, bankruptcy filing, and other solutions to stopping foreclosure. This will not necessarily prevent the foreclosure process, but it will buy you some time to work out a different solution.
+ What happens if I can't avoid foreclosure? Do I have options?
In the instance that you cannot settle on a plan for avoiding foreclosure, there are some liquidation terms to consider. Rather than facing foreclosure, you can elect for a short payoff, an assumption, or a deed-in-lieu of foreclosure.
A short payoff is essentially a pre-foreclosure, which will allow you to sell your house for less than what you owe and pay off your mortgage company, with the excess written off.
An assumption will let someone take over your mortgage and make the payments, even when the mortgage isn't supposed to be able to do that.
A deed-in-lieu of foreclosure basically means that you volunteer to give your mortgage back to the lender. It essentially cancels your mortgage, and looks better on credit than foreclosure.
+ Can you explain all this foreclosure lingo?
When you want to keep your home, this is known as working with your lender to allow for retention. Retention basically means that you're going to be able to keep owning your home. There are many ways to do this, including reinstatement, forbearance, repayment plans, and loan modification.
Reinstatement is a lump-sum payment is made to catch your mortgage up. Your lender might agree to this, but there may be fees and other costs associated with this process.
Forbearance is essentially a chance for you to suspend or reduce your payments for any period of time to allow you to get back on track. This is often combined with a repayment plan or reinstatement to make up for the missed payments.
A repayment plan is a plan that you will set up with your mortgage on her that allows you to repay what you owe from missed payments. By combining the past due balance with your monthly payments, you can have an affordable solution to get back on your feet.
Loan modification is essentially a way of changing your loan. This could be a change in the amount of your monthly payments, changing the interest rate, or a change in the term of the loan. Your lender will decide what options you are going to be offered to make the payments more affordable for you.
Facebook
Twitter
Google Bookmarks