©Danilo Rizzuti - freedigitalphotos

©Danilo Rizzuti – freedigitalphotos

Foreclosure, you keep hearing this word everywhere now, a lot of people are facing it, or trying to avoid it, get a better understanding of the process below.  Foreclosure is not a complex process; there really are only a few steps to it.  If you are worried about foreclosure and want to know what you might be facing, this article will be informative.

With the Foreclosure Process, there really are four things we will be examining, when it comes to foreclosure:

•    Bank Records Notice of Default
•    Reinstatement of Loan
•    Date of Foreclosure
•    Foreclosure Auction

The above four items are basically the foreclosure process in a nutshell.  For a closer look at each step continue reading.

The first process of Foreclosure is when your lender records the notice of default.  This means that you have missed a couple payments on your mortgage and your bank made an official record of it.  You now should consider yourself on notice and in the pre-foreclosure stage.  You haven’t officially been foreclosed on yet, so start getting help now if you haven’t already and exploring options, this is not a time to procrastinate.  Talk to everyone who knows about foreclosure and state exploring your options, there are many out there to help you.  Do online research about the foreclosure process and look into what other people have done to avoid it.

The second step to the foreclosure process is the reinstatement of the loan. This means that you can try to refinance your mortgage, and avoid foreclosure.  This is the time you should be meeting with your lender and looking at refinance options.  If you can’t get a new mortgage another option would be for you to come up with the money to pay your missed payment and possible late fees and then you can have your originally home loan reinstated.  This is possible to do up until 5 days prior to the sale of the home through a foreclosure auction.

The third step of the foreclosure process is the official statement from the bank setting the date of foreclosure.  This date is usually around 90 days from your noticed of default.  You can live in the home until this date, but you should be making other living arrangements, because you will be evicted on this date.  This is the time you need to look for possible apartment rentals, until you can get back on your feet and find a cheaper house.  Or stay with family members who you can stay with, until you get your finances in order.  You should be packing up your items in this 90 day period and moving things out, you don’t want to have to wait for the last minute and to be evicted.

The Fourth step is your house being sold at a foreclosure auction.  This is when you need to officially accept that you have lost your home to foreclosure.  Hopefully you made other living arrangements earlier on.  Someone may bid on you home and purchase it at a lower price than what you owe on the loan.  If this happens the owner will immediately have you removed from the home.  This usually happens in less than 24 hours by a sheriff.  If no one buys your home at the auction, the bank will still own the home.  The bank can choose to either evict you right away, or they may possibly give you a few weeks, to leave.  Either way you should move out before the auction even happens.

So this is the foreclosure process, it is not very complex and usually takes around 3 to 6 months to get through.  Sometimes it can even take the bank a year to officially foreclose on you.  Either way if you make use of your time to look into your options, you can stop foreclosure.

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