Foreclosure

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Foreclosure

A foreclosure may occur on a property for several reasons, some temporary and some permanent:

• Loss of employment

• Too many bills

• An illness and/or a disability

• Fraud

The Pre-Foreclosure Process

1. The mortgage payment is not paid

2. Late notices are sent by the lender

3. No additional payments are sent

4. The lender attempts in writing and by phone to resolve the situation

5. No payment arrangements are made

6. The lender demands payment in full, under the acceleration clause (basically a

clause in every mortgage stating that if you fail to make your payment, the lender

can demand that the full payment of debt be repaid immediately. Ex: if your current

mortgage is $200,000.00 and your monthly payment is $1,900.00 a month, under

the acceleration clause, you would have to, at once, repay the total balance of

$200,000.00).

7. The lender will not accept your current monthly payment and will not accept any

payment arrangements

8. From here the foreclosure process begins

The Foreclosure Process

1. The Notice of Intent to Foreclose is sent via; law officer and/or certified mail

2. The lender begins court proceedings

3. Legal noticies, as required by law, are published in local papers

4. No further arrangements are established

5. Notice and waiting periods expire

6. Court hears lenders claim

7. Court issues an order for the lender to foreclose

8. Legal notice, foreclosure sale and ads will now be published in local newspapers

9. House sold at auction to the highest bidder

Frequently Asked Questions

Q: How long does this process take?

A: Usually six months, more or less. It depends upon a few items, how fast your

lender acts, how backed up the courts are, the specific laws in your state and are

you attempting to arrange an acceptable payment plan with your lender.

Q: Can I be kicked out of my house during the pre-foreclosure and/or foreclosure

process?

A: No. Only after a court order can you be evicted. The lender must follow a

foreclosure and an eviction procedure. Both can take some time.

Q: Is it true that even after a foreclosure, I may still be liable for additional monies?

A: Yes. If at auction, your house was purchased for less than what you currently owe,

you will have to pay the difference.

Q: Once a pre-foreclosure and/or a forecloure process starts, can I do anything to

stop it?

A: Yes. But, the longer you wait, the greater the chance that your options will expire.

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