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Foreclosure is
the legal process by which a mortgagee, or other lien holder...
usually a lender, obtains a termination of
a mortgagor's equitable right of redemption, either by court
order or by operation of law (after following a specific
statutory procedure).
Usually a lender obtains a security interest from a borrower who
mortgages or pledges an asset like a house to secure the loan.
If the borrower defaults and the lender tries to repossess the
property, courts of equity can grant the borrower the equitable
right of redemption if the
borrower repays the debt.
While this equitable right exists, it is a cloud
on title and the
lender cannot be sure that it can successfully repossess the
property.
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HAVE YOU MISSED YOU HOUSE PAYMENT?
Search for a HUD-approved housing counselor, or
Call toll free (800) 569-4287 to find a housing counselor near
you, or
Call the Homeowners Hope Hotline at (888) 995-HOPE.
Haven't missed a house payment yet,
but afraid you might?
Has your financial situation changed due to a mortgage
payment increase, loss of job, divorce, medical expenses,
increase in taxes or other reasons?
Is your credit card debt becoming unmanageable?
Are you using your credit cards to buy groceries?
Is it becoming difficult to pay all your monthly bills on time?
If it’s becoming harder to make your
house payment each month:
Contact a HUD-approved Housing Counselor, or
Call toll free (800) 569-4287 to find a housing counselor near
you.Few people think they will lose their home; they
think they have more time. Here's how it happens.
Note: Timeline varies by state.
First month missed payment
Your lender will contact you by letter or phone.
A housing counselor can help.
Second month missed payment
Your lender is likely to begin calling you to discuss why you
have not made your payments. It is important that you take their
phone calls. Talk to your lender and explain your situation and
what you are trying to do to resolve it. At this time, you still
may be able to make one payment to prevent yourself from falling
three months behind. A housing counselor can help.
Third month missed
payment after the third payment is missed
You will receive a letter from your lender stating the amount
you are delinquent, and that you have 30 days to bring your
mortgage current. This is called a "Demand Letter" or "Notice to
Accelerate." If you do not pay the specified amount or make some
type of arrangements by the given date, the lender may begin
foreclosure proceedings. They are unlikely to accept less than
the total due without arrangements being made if you receive
this letter. You still have time to work something out with your
lender. A housing counselor can still help.
Fourth month missed payment
Now you are nearing the end of time allowed in your Demand or
Notice to Accelerate Letter. When the 30 days ends, if you have
not paid the full amount or worked our arrangements you will be
referred to your lender's attorneys. You will incur all attorney
fees as part of your delinquency. A housing counselor can still
help you.
Sheriff's or Public Trustee's Sale
The attorney will schedule a Sale. This is the actual day of
foreclosure. You may be notified of the date by mail, a notice
is taped to your door, and the sale may be advertised in a local
paper. The time between the Demand or Notice to Accelerate
Letter and the actual Sale varies by state. In some states it
can be as quick as 2-3 months. This is not the move-out date,
but the end is near. You have until the date of sale to make
arrangements with your lender, or pay the total amount owed,
including attorney fees.
Redemption Period
After the sale date, you may enter a redemption period.
You will be notified of your time frame on the same notice that
your state uses for your Sheriff's or Public Trustee's Sale.
Important
Stay in contact with your lender, and get assistance as
early as possible. All dates are estimated and vary according to
your state and your mortgage company. |
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