Questions And Answers About The Foreclosure Process And How It Will Effect Your Household

If you are in foreclosure, you are going to have many types of questions on your mind about what exactly is happening.  In this article, I’m going to go over some of the most frequently asked questions that people have when it comes to the foreclosure process.

What is Foreclosure?

Foreclosure is when a secured creditor attempts to collect money that you borrowed from them in order to buy or refinance your home.  The foreclosure process starts when you do not have the money to pay them back and you have missed a couple payments on your mortgage.  The lender you borrowed money from will then take back what you borrowed money for, like your home.

Can the Bank Kick me out of my home?

Yes and no. They won’t just come and kick you out immediately.  There is a procedure within the court system that the mortgage holder must follow. Before they will come and evict you out of your home, they must go through the entire foreclosure process. But eventually this can and will happen if you don't do something to stop the foreclosure.

How do I know if the lender will be taking my home?

There is a guideline known as pre-foreclosure. This is the time where you will have indications that the lender is getting ready to start foreclosure. 

The process usually goes like this:

1.    Homeowner misses mortgage payment

2.    Lender sends late notice

3.    Homeowner misses another payment

4.    Lender attempts to resolve the situation in a notice or phone call

5.    No arrangements are agreed upon or homeowner eludes contact with lender

6.    Homeowner does not make another payment

7.    Lender then may demand that the whole mortgage is paid in full

I just was late on a couple payments, how can the lender demand that the whole mortgage be paid in full?

Under the Acceleration Clause, the lender can and will insist that payment be made in full if you was late on a couple mortgage payments.  Most mortgages state that if you fail to pay the bank under the terms agreed upon, they can accelerate the mortgage, meaning the total amount due.  If you missare late on mortgage payments, you will not only owe the amount in full, but also any interest and late fees.

I have already have been late on a couple payments, what is the exact legal foreclosure process?

1.    The bank will send a notice of intent to foreclosure delivered by a county sheriff or certified mail

2.    The bank then goes to the court system to ask for a foreclosure

3.    Legal notices are required by law to be published in local papers

4.    The period during which you could have paid the bank back to avoid foreclosure expires

5.    The court holds a hearing regarding the bank’s claim that you haven’t paid them

6.    The court then issues an order allowing the bank to foreclose

7.    Legal notice of the actual foreclosure sale and advertisements will then be published in the local papers

8.    If no settlements have been reached by the homeowner and bank the house will go to auction and be sold to the highest bidder

Hopefully this answered most of of your foreclosure questions, if you have more feel free to leave a comment and I will answer them.

Nick writes for the ForeclosureFish website, which gives homeowners the advice and resources they need to avoid foreclosure by themselves and fight back against the bank's lawsuit. The site describes various options to save a house, including foreclosure loans, deed in lieu, repayment plans, stopping a foreclosure auction, bankruptcy, and more. Visit the site on the web to read more about how you can avoid foreclosure and eviction, repair your credit, and establish a long term financial plan once a financial crisis is over: www.foreclosurefish.net/

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated