Foreclosure is a process where the bank or mortgage lender takes back or sells off your house when you default on the mortgage payments. The process could take anywhere from a couple weeks to a year and up. It all depends on the loan company and the state/jurisdiction in which you live. There are many stages to the foreclosure process.
Stage 1 Pre-Foreclosure: You're late with a payment and obtain a notice from your loan company. Most banks give you a ten-day grace period, so if you pay within the 10 days you should be fine. In case you go over the ten days you will get a "missed-payment" notice in the mail and you will more than likely have to pay a late fee. This is all pre-foreclosure so if you pay up before 30 days you should be fine, but you could have a bad mark on your credit record.
Stage 2 Notice of Default: If you're over 1 month late with the mortgage payment, the bank is likely to send a "Notice of Default" (NOD) asking you to pay up or they're going to begin foreclosure proceedings.
Stage 3 Foreclosure Proceedings: When you ignore the bank and still have not contacted them or paid the total due, they will begin foreclosure proceedings and send you a foreclosure notice with a agenda for the foreclosure sale.
Stage 4 Foreclosure Sale: If the house is sold at auction to the winning bidder, it's no longer your property if you live in a state with no redemption period. You have one more an opportunity to get your home back if you live in a jurisdiction which has a redemption period. A redemption period allows you a certain amount of time (just how long is determined by where the home is located and what rules apply) to purchase back the house from the new owner at their price plus any attorney's fees and interest. If there is no winning bidder, then your bank takes ownership and you lose your property.
Stage 5 Eviction: If you reside in a state without any redemption period and there's a winning bidder or you haven't bought your property back from the winning bidder in a redemption state within the allotted time, the winning bidder can officially have you evicted from your home by way of a court appointed officer.
At any time along the way you could potentially save your home, however it is much easier in the early stages. If you believe you can't make the payments, notify the lender without delay and you might be able to work something out. There is currently a program established through the federal government called "Make My Home Affordable." If approved, you'll pay 31% of your gross monthly income on the mortgage.
Watch out as there are many scammers out there that look at the legal publications and may attempt to provide you with another option using an in advance fee. Generally, it's going to waste your precious time with little or no results.
Stage 1 Pre-Foreclosure: You're late with a payment and obtain a notice from your loan company. Most banks give you a ten-day grace period, so if you pay within the 10 days you should be fine. In case you go over the ten days you will get a "missed-payment" notice in the mail and you will more than likely have to pay a late fee. This is all pre-foreclosure so if you pay up before 30 days you should be fine, but you could have a bad mark on your credit record.
Stage 2 Notice of Default: If you're over 1 month late with the mortgage payment, the bank is likely to send a "Notice of Default" (NOD) asking you to pay up or they're going to begin foreclosure proceedings.
Stage 3 Foreclosure Proceedings: When you ignore the bank and still have not contacted them or paid the total due, they will begin foreclosure proceedings and send you a foreclosure notice with a agenda for the foreclosure sale.
Stage 4 Foreclosure Sale: If the house is sold at auction to the winning bidder, it's no longer your property if you live in a state with no redemption period. You have one more an opportunity to get your home back if you live in a jurisdiction which has a redemption period. A redemption period allows you a certain amount of time (just how long is determined by where the home is located and what rules apply) to purchase back the house from the new owner at their price plus any attorney's fees and interest. If there is no winning bidder, then your bank takes ownership and you lose your property.
Stage 5 Eviction: If you reside in a state without any redemption period and there's a winning bidder or you haven't bought your property back from the winning bidder in a redemption state within the allotted time, the winning bidder can officially have you evicted from your home by way of a court appointed officer.
At any time along the way you could potentially save your home, however it is much easier in the early stages. If you believe you can't make the payments, notify the lender without delay and you might be able to work something out. There is currently a program established through the federal government called "Make My Home Affordable." If approved, you'll pay 31% of your gross monthly income on the mortgage.
Watch out as there are many scammers out there that look at the legal publications and may attempt to provide you with another option using an in advance fee. Generally, it's going to waste your precious time with little or no results.
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