Author: Yolanda J. Ash
Few people think they will actually lose their home to foreclosure, but, the numbers of homeowners being displaced by foreclosure grows daily. There are many factors which can contribute to you facing the threat and reality of foreclosure. It only takes three short months of delinquent house payments to put you and your family at extreme risk of foreclosure. There are specific STATE BY STATE FORECLOSURE LAWS, which must be followed.
Although each state has specific legal foreclosure guidelines, this FORECLOSURE TIMELINE provides an idea of where your situation stands in the grander scheme of things.
- FIRST MONTHLY MORTGAGE PAYMENT DELINQUENT/MISSED-Usually, once the lender recognizes your payment as delinquent, you will receive either a courtesy letter or phone call reminding you of your responsibility.
- SECOND MONTHLY MORTGAGE PAYMENT DELINQUENT/MISSED-Although you may have the best intentions, once your mortgage has fallen delinquent two months in a row, lenders get worried. Therefore, it is vitally important that regardless of your financial situation, you answer your lender’s calls. By doing so, you give the lender some assurance that you are at bare minimal, attempting to work your situation out. Additionally, at this time, you may be able to make at least one payment to prevent yourself from fallling three (3) months behind.
- DEMAND LETTER OR NOTICE TO ACCELERATE PERIOD-Once you have fallen three (3) months delinquent on your house mortgage, you will receive notification from your lender outlining the amount you owe and giving you thirty (30) days to bring your account current. If you do not make payment or have not made a specific payment arrangement, foreclosure proceedings will begin. Once you reach this point, your ability to negotiate a payment arrangement with your lender has greatly depreciated.
- FOURTH MONTHLY MORTGAGE PAYMENT DELINQUENT/MISSED-Once your house mortgage has reached the fourth month of delinquency, your account will most likely be turned over to your lender’s attorneys. Be mindful, you will not only be responsible for the delinquent amount owed (including applicable accrued interest), but you will have to pay all lender attorney’s fees also.
- SHERIFF’S OR PUBLIC TRUSTEE’S SALE-This is the actual day of foreclosure. Your lender’s attorney schedules this sale. You may or may not be notified of the date of this sale. Notice might be attached to your door, and the sale of your home advertised in the local paper.
- REDEMPTION PERIOD-This is the period of time after foreclosure that your home has already been sold. You may still be able to reclaim your home by paying all outstanding amounts owed as well as paying any costs incurred during the foreclosure period.
Facing foreclosure is a frightening experience. However, there is help and guidance available to either help you to reclaim your home or, to move ahead. If you are facing foreclosure, do not become paralyzed by the possibility. Aggressively pursue help and keep your lender posted at all times. Often, a simple phone call can make all the difference in the world.
