Q: What does it mean to be in Foreclosure?
A: According to dictionary.com, to Foreclose is to deprive (you) the mortgagor of the right to redeem mortgaged property when payments have not been made. When you have missed 2 monthly payments you have defaulted on your loan and are in danger of being foreclosed on by your bank.
Q: If I am in Foreclosure, how much time do I have until I have to leave the house?
A: Laws vary from state to state. Judicial states are required to go through the courts to foreclose, but in a non-judicial state a trustee can order the sale of property 30 days after a delinquency. Your foreclosure attorney can discuss different options and variables with you such as timelines, etc.
Q: What are the steps in the Foreclosure Process?
- The borrower defaults on their mortgage.
- A Lis Pendens is filed on behalf of the lender. This is a notice of pending litigation.
- The homeowner is served with a Complaint and the Lis Pendens.
- The homeowner has 20 days to respond to the Complaint.
- If the homeowner files no response within the required time, the lender may move for a default.
- A hearing is held on the lender’s motion for summary final judgment. If granted, the judgment is entered and a sale date for the home is set.
- The property is sold at auction.
Q: What are some of the Ramifications of Foreclosure?
A: While the foreclosure process itself may be quite difficult and painful, there are more long-term consequences that are important to consider. The most immediate problem is one associated with the actual value of the repossessed home. After a foreclosure if the court-approved sale of the property is not sufficient to pay the debt, then there is a deficiency. For example, if a homeowner owes $100,000 on a mortgage loan, but the foreclosure sale only brings in $60,000, there is a deficiency of $40,000. This amount is technically still owed by the borrower. Some states have laws prohibiting a lender from recovering this deficiency from the borrower, but other states do not. Some states permit a lender to legally pursue the amount of the deficiency from the borrower. If they obtain a deficiency judgment, then they can seize bank accounts, garnish wages, place liens on other property and pursue other collection remedies. They can do this until the deficiency is satisfied. Lenders can also sell the deficiency judgment to a third-party debt collector. It must be noted that every foreclosure case is different. There are no guarantees of specific outcomes or successes. Your foreclosure law firm can discuss the potential outcomes and provide you with information that can apply specifically to your case.
Q: What are my options?
A: There are several options that are available to homeowners that are in foreclosure, but many of them can have potentially long-term negative effects. . However, it is absolutely critical that you don’t ignore mortgage holder notifications. If you do, it is almost certain that you will lose your home.
The best course of action for your particular situation can only be determined by an attorney or by a legal professional. Litvin Law Firm has attorneys that are focused on foreclosure throughout the United States and will provide you with a no cost or obligation consultation. Call (888) 311-8231 now to speak with a foreclosure professional.