Monday, September 2, 2013

What To Expect During The Foreclosure Process

When your financial situation changes and you know that your future may involve foreclosure it is best to know what to expect and learn what you can do during the process to avoid foreclosure altogether or at least experience less anxiety.

You will have first lost the primary source of income because of an illness, layoff etc.
You may have savings but this is the time to reach out to your mortgage servicer and request some help. The people that will answer the phone will only be a answer service or customer service. Please do not try to answer their question with estimated answers, this could harm your case. Tell them you are not prepared to answer those question. Their only job is to get money from you. Ask for the "loss mitigation" department and get their direct number before you are transferred.

Before you get started on this journey know that the process can be long and stressful. Be prepared by writing all of your information in a notebook when you have to recall information. You will capture names, dates, instructions and more.

Should you ignore the fact that you have lost an income and begin to fall behind know that this happens to millions of families everywhere. We go into denial and then a shock that leaves us paralyzed. This is because we where never prepared to deal with the possible loss of our homes.

Paralysis can only leave you in deeper trouble. Always answer every letter that comes from your bank. Below are the letters leading to foreclosure you can expect. Once your bank is working to help you get a home loan modification this process will be stopped until a decision is made. However there is a new sneaky bank practice that will allow the bank to take your home quickly should you be denied.

4 Letters of the Foreclosure Process

  1. Notice To Accelerate=They will ask for back payments with pay be a specific date.
  2. Demand Letter. You will receive it if you have not bought your mortgage up to date as directed. It will be sent from a bank hired attorney demanding action to your Notice to Accelerate letter. This means you have been officially notified before court proceeding.Should this matter be taken into court you will also be responsible for court and attorneys fees.
  3.  Notice of Default. This is the second stage of the foreclosure process. The bank will now file a foreclosure lawsuit or Notice Of Default with the county recorder. You will receive a letter of this judgement.You have approximately 30 days to respond. The hearing (court date) is then set at your county courthouse. If you don't show the bank swill win and go forward with the foreclosure process.
  4. If you have not gotten a loan modification by this point and have never gone into litigation you will receive a Notice of Sale with in 20 to 30. Today the banks are backed up so it may take longer.The property is then auctioned off in a sheriff sale. 

How You Can Avoid Foreclosure

  1. Pay mortgage up to date with interest.
  2. Sell home. Short Sale
  3. Home Loan Modification
Getting your home mortgage payments comfortable for you to maintain is the best situation for you and the bank. The banks do not want to take on more inventory then they have to. Their business is  making money. My goal is for anyone reading this to become a little more familiar to the process of home foreclosure
. In order to get help you have to know where you are. If you have been served papers from your mortgage holder. Call them right away even if you don't see yourself winning. You never know what the extra time may prevail to you.