©Keerati - freedigitalphotos

©Keerati – freedigitalphotos

If you are a homeowner who is facing foreclosure, this can be a quite a difficult time for you.  Foreclosure can not only affect you, but also your spouse and children. This why it is important to know your rights as someone who is forced to deal with the threat of foreclosure.  If you are fighting a foreclosure, you don’t have to be helpless, and the more knowledge you have about the process, the less stressful the whole experience can be.

Keep in mind state laws do vary, so this is something you will want to look into when learning your rights.  However, most foreclosures follow a common line or process and you do have general rights during the process.

The Foreclosure Process And The Homeowners Rights
After most homeowners fail to make their monthly mortgage payments for a period of months (typically around 90 days) the lender will start the foreclosure process.  This is so they can take complete ownership of the property as collateral on the mortgage.

If the lender decides to pursue a foreclosure then they must provide you — the homeowner — with written notice of that intention.  The homeowner then has the right to pay back all the past due amounts along with the late fees and other penalties agreed to in the mortgage contract.  If the homeowner does pay all the outstanding fees and past due amounts, the foreclosure process will be stopped.

Most homeowners cannot come up with all the money right away; otherwise they would have been paying it to start with.  So the homeowner has the right to discuss payment options and alternatives with their mortgage lender.  This is where the homeowner can try and renegotiate the terms of their mortgage so they can keep their property.

If they homeowner and lender cannot come up with a financial solution to save the home, the homeowner has the right to discuss the possibility of a private sale with the lender.  Sometimes a private sale can yield a higher selling price than a foreclosure and it can pay off the existing mortgage debts and leave the homeowner with a bit of profit.  Keep in mind the right of redemption would not attach to a private sale.

It is the homeowners’ right to remain in the home during the foreclosure process, if they choose to.  But the responsibilities to maintain the home and pay the real estate taxes and home insurance come along with the right to stay in the home.

Right Of Redemption
In some states, if an agreement cannot be worked out prior to foreclosure, then the homeowner has the right of redemption.  This statutory right allows the homeowner to regain ownership of the house by buying it back after the property has been foreclosed.  The redemption law allows the homeowner to regain ownership of the home paying the foreclosure sale price and interest rate to the lender.  This right usually is used within 6 to 12 months of the foreclosure sale.

Keep in mind the most important right of a homeowner is to have been treated fairly through out the foreclosure process.

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One comment

  1. karen langston says:

    i was not treated fairly during the foreclosure process now or in 2006. i managed to stop the foreclosure sale in 2006 but it was a difficult process made worse by my lender. my husband had died and i was getting run around with life insurance com. i stayed in constant contact with my lender and their attorneys. was able to get the sale date extended twice even though i was told by the lender when i called to confirm sorry there is nothing we can do only to find out i had been given extension. i even removed all belongings thinking it was going to sale. in the end i paid the reinstatement 4 days before the last scheduled sale. and i took the opportunity to make some much needed improvements and repairs to my home since it was completely empty. i informed my lender of my plans since i have a fha loan and i am required to live it. i took 4 months and told them i would be done and moving back in in nov.2006. after i moved back into my home the lender started charging $29 i was told to pay for someone to drive by and see if someone was living in the house? i just paid $6800 to save my home spent 4 months working on it and spent over$10,000 fixing it up and they sent someone to drive by? how can they tell from driving by? and I TOLD THEM WHEN I WOULD BE MOVING BACK IN SO WHY CHARGE ME FOR SOMETHING I HAD ALREADY INFORMED THEM OF? i have been billed this $29 several times since. and its only me now that my husband is gone i really didnt need the extra burden. even if it was only $29. with the money i had left after paying all my late husbands debt i started a small auto repair and custom exhaust business with a friend. good idea bad timing at the same time tx offered $3,000 incentive to get older vehicles of the road to improve air quality. so much for the exhaust business. what i thought would be an opportunity for me to handle my bill alone became a liability. when i realized i was in trouble i called my lender looking for help. i was 2 months behind at that time. i asked for resources available anything that might help me get turned around. the only thing i got was sorry theres nothing we can do and we werent aware that your husband had passed? and you are going to have to fax us a copy of his death certificate. but i wasnt surprised after the way they treated me in 2006. i finally had to admit my business wasnt going to bring me the income i had thought and put my equipment up for sale. by now it was mid nov. and with the economy and christmas??? i didnt get any serious offers, although i got several calls asking me to hold it for them till after the first of the year when most were expecting tax refunds. of course i couldnt do that i needed to sell to the first person with cash. by now it was a matter of losing my business or keeping my home. i wanted to keep my home. i called my lender again and informed them of my plans and how i was trying to get my payments caught up. they were not interested or thats how i felt. i called hope now i got a letter in the mail. at first i wasnt going to since you get alot of mail from would be “helpers” but come to find out it was a gov. backed group. but since i was unemployed nothing could be done. my only option was selling my equipment and making full payment to get caught up. which i felt was the only thing i could do and the lender would not offer me any solutions. i finally found a buyer and he was willing to pay the asking price of $7,000. enough to get the house reinstated and time for find employment (1 month) so i could continue to make my payments on time. only problem he couldnt come for 2 weeks? i called my lender and explained the problem and requested a month extension. i gave them his number and asked if they did call to verify please dont tell them why they were calling. the day after i did this i got a call from the buyer he was only going to pay me $5000 now? not enough but i could come up with the rest so i didnt argue. the weekend before he had said he would be here to pay for and pick up the bender he calls me again and this time informs me he is only going to give me $3000 and if i want to keep my home i’m just going to have to take it. i told him it didnt matter since my home had been sold a week and a half earlier. i have not talked to him since. but i have got another buyer he had trouble coming up with the $6000 i now had it listed for and i was waiting for another guy to get all the money together, i guess since i’m a woman they feel like they can take advantage. anyway the one guy seemed to genuinely want the equip. and was telling me down to the dollar how much he had that i e-mailed him and said when you get $5500 let me know and its yours ill give you some time and not consider anyone else. i figured i already lost my home what the point. plus i read somewhere while trying to find help about president obama saying we all have to do our part to help in the recovery program and that was my contribution. he e-mailed me the other day and said he has $5100 would i take that? i havent replied to him yet. i still want to keep my home and yes im still in it. i have a court date to evict april 14 but i plan to contest the sale. i dont know what else to do. my lender now has the deed of trust on a home that is in good shape thanks to me and all i wanted was some help in oct. and then a one month extension in march. but they didnt care because sorry there is nothing we can do. i dont know where to turn so i’m reading everything i can find. help. karen langston

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