Understand The Foreclosure Process
To put it into simple language, mortgage foreclosure is the process a bank or Mortgage Company (In a judicial foreclosure) and a trustee (in a non-judicial foreclosure) will use to take back ownership of your home because you have failed to make your mortgage payments at the appointed time. You are the debtor or mortgagor and are supposed to pay the installment or mortgage payment every month to your mortgage lender who is the mortgagee.
When you fail to make a mortgage payment within 30 days of the due date you are considered to have defaulted which means that you are now delinquent on your payments. Proceedings can then be initiated for the mortgagee to foreclose on the mortgage and take the home back. Therefore, the foreclosure process involves terminating your ownership interest and rights to the property, evicting you from the premises and selling your property (usually at auction) to recoup the money that was loaned.
The foreclosure process:
There are two types of foreclosure processes and procedures that differ depending upon the state you are in called either judicial and a non judicial states. Litvin Law Firm practices in 31 states and is thoroughly familiar with both judicial and non judicial proceedings.
In a judicial foreclosure, the process is controlled by the courts. The judge grants a final judgment to the lender which closes the proceeding and allows the bank to repossess the home. A non-judicial foreclosure does not require an action of the court. A trustee who is appointed by the lender has the authority to order the sale of a property in as short of a time as 30 days from the initial delinquency.
In general, the foreclosure process begins when a loan payment becomes 30 days overdue. Usually your mortgage lender will contact you in an attempt to work out a repayment schedule. You should not ignore any attempt by your lender to contact you. Most mortgage companies are likely to begin foreclosure procedures within a sixty to ninety day delinquency. As your mortgage payments become even more past due, the collection calls will come on a more consistent basis. Again, it is strongly recommended that you do not ignore these contact attempts by your lender.
After your payments fall 90 days behind, the mortgage company will most likely send a registered a letter to you called a Notice of Default (NOD). This letter puts you on notice that the bank has the option to turn your mortgage over to an attorney and start the formal foreclosure process. Remember, the foreclosure process varies from state to state, so do your due diligence in researching information about how the foreclosure process is handled in your state. You need to know if you are in a judicial foreclosure state or non-judicial foreclosure state. Litvin Law Firm will be happy to help you with this information free of charge or obligation; just call us toll free at (877) 829-4104 law or inquire through the live chat option that you see on this page.
The notice of default will provide you with specific information including the time period and amount necessary to be paid in order to rectify the default and avoid foreclosure. The lender may provide other options where you can still keep your home, like a forbearance plan or loan modification. However, these can be difficult to negotiate on your own.
If you are unable to reach a settlement with your lender within the given time frames, then your lender will set a foreclosure sale date. Your lender will then take the required steps to sell the property at public auction with the proceeds from the sale paying what is owed to the mortgage holder.
If the sale price is not enough to cover the outstanding debt and the costs associated with the sale, the mortgage lender can pursue a deficiency judgment against you. This action is a court order that requires you to pay the remaining balance to your lender.
You can defend foreclosure! The attorneys and paralegals at the Litvin Law Firm are experienced on the subject. For information on foreclosures, the process, your options and how to save your home, please call a Litvin foreclosure professional at (877) 829-4104, respond to our live chat on this page, or fill out the short form on this page and a member of the Litvin Law Firm foreclosure team will reach out to you.