Legally, many mortgage lenders can begin the foreclosure process after just a single missed payment. Conventional loans, which the government does not insure, may move forward on foreclosure within just 15-20 days past the grace period of that first missed payment. Yikes!
Luckily most lenders won’t pursue foreclosure until a homeowner is three payments behind, but the sooner you get a foreclosure lawyer on your side to help you navigate this difficult time, the better.
What Does Foreclosure Mean for the Homeowner?
Foreclosure is the legal route a mortgage lender takes when a homeowner defaults on their loan to either collect the monies owed or sell the property for as much as they can get for it to recoup their investment.
Normally, the homeowner will receive a notice that a payment has not been received, and then they will get a demand letter stating that the borrower has 30 days to catch up on missed payments.
Then a notice of default is sent (often after 90 days of missed payments), and the account may be assigned to the foreclosure department of the mortgage company. If an agreement is not reached and an arrangement is not made, the next step is generally a notice of trustee sale, where the lender makes a public announcement that the property will be going up for auction at a specific time on a specific date.
All homeowners’ names get published at this time, along with the address and basic information about the house. The auction usually takes place several weeks later, and the home goes to the highest (qualified) bidder. If the house does not sell at auction, ownership gets transferred to the lender, and they list it “traditionally” with a real estate agent.
Now, listen. There are options along every single step of this journey, and lenders usually don’t actually want to foreclose on properties. If you received a notice from your lender that they are taking action, it doesn’t mean that all hope is lost. Even if you aren’t able to pay the past due amounts within the stated time frame, there may be other options available for you.
Is It Possible to Avoid Foreclosure?
At Berken and Cloyes, PC, we have helped countless homeowners avoid foreclosure and regain control of their finances. What specific path is right for you will be determined by you and your family. Our job is to make sure you know about all possible options that could benefit you.
For some people, this may mean bankruptcy or a short sale. For some, foreclosure might actually be the best route. Our attorneys will analyze your exact situation and the circumstances that led to it and advise you on all recourse available to you. We have had many clients harassed by lenders, and subjected to unfair collection practices, which worked in our clients’ favor, so be sure to be completely open about what you have experienced with your lender during your free case review.
Our goal is to get you into a better financial position where you are back in control. If your goal is to keep your home, we will show you all the potential ways to do just that, and if you choose to work with us, we will work towards the best possible outcome.
Call our offices today to get your free case review with no obligation and find out if we can help you keep your home and regain financial peace.