Ways To Get Out Of Debt

Is It Possible You Are At Risk Of Your Mortgage Company Foreclosing On Your House

March 28th, 2009

A foreclosure doesn’t take place over night. Actually it takes about 6 months from the 1st missed payment. Without exception there is a legal process that must be adhered to. In this article we explain the steps of a typical foreclosure process to assist you to determine if you are at risk of foreclosure.

Are you behind a house payment?
Should you be behind with your mortgage payments then you are definitely at risk of your lender foreclosing. In a perfect world you will catch up and pay on time. This may be easier said than done but you really should make it a high priority without avoiding the situation. If you want additional foreclosure information head over to Loan-Modification-Masters.com to learn how you can get assistance.

Haven’t missed a mortgage payment yet but fear you might?
Was your financial condition changed due to a mortgage payment increase, losing you job, getting a divorce, medical expenses, increase in taxes or another reason?

Is your credit card debt becoming unmanageable?
Have you been using a credit card to purchase food?
Has it become difficult to pay all your monthly bills in a timely manner?
If it seems to be more difficult to pay your house payment every month you need to look for professional assistance. There are several places to get counseling for debt and financial problems. Few people really think they will lose their home, they believe they have more time.

Although the time-line is different from state to state, essentially this is how a foreclosure goes:

The first months’ payment missed – your bank will contact you by mail or call. You should talk to them and always be patient and polite. Now it’s time to find a foreclosure specialist to find out what foreclosure programs are an option for you.

The second missed payment – your bank is probably going to begin calling you to learn the reason you haven’t been making your payments. It is important for you to take their calls. Speak with your mortgage company and explain your situation and how you are attempting to change it. At this time, you could still be able to make one payment to stop yourself from falling three months behind.

Third month missed payment – once a third payment is missed, you will get a letter from you lender informing you of the amount you are behind, and that you only have 30 days to bring your loan current. This is called a “Demand Letter” or “Notice to Accelerate”. Should you not pay the specified amount or make some type of arrangements by the stated day, the bank may start foreclosure proceedings. They are unlikely to accept less than the full amount due without an agreement being made if you get this letter. There is still time to work out something with your mortgage company.

The fourth missed payment – now you are nearing the end of time allowed in your Notice to Accelerate or Demand Letter. When the 30 days comes to a close, if you have not paid the full amount delinquent or made arrangements you will be referred to your bank’s attorneys. You are going to be responsible for all lawyer expenses as part of your back owed amount.

Next comes a Public Trustee’s or Sheriff’s Sale – the attorney will setup a Sale. This is the actual date of foreclosure. You may be informed of the sale date by a letter, a notification is taped to your door, and the sale may be advertised in a local paper. The period from the Notice to Accelerate or Demand Letter and the Sheriff’s Sale differs in each state; it can be as soon as 2 or 3 months. This is not the move-out deadline, however you are nearing the end. You have until the day of sale to make other arrangements with your lender, or come up with the full amount due, including attorney expenses.

Redemption Period – after the sale date, you could have a redemption period. You will be notified of the schedule on the same notice that your state uses for your Public Trustee’s or Sheriff’s Sale.

Important: Stay in contact with your bank and ask for assistance as early as you can. All schedules are an estimation, and vary according to your state and the lender.

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