In simple terms, foreclosure comes about when you miss several mortgage payments and give your lender the impression that you have no plans of getting back on track. Digging deeper shows that there is actually more to the process.
Here's what happens in foreclosure:
- Fall behind on mortgage payments: For some reason, you're unable to make your mortgage payments, causing concern on behalf of the lender.
- The lender sends a notice: You won't receive a foreclosure notice right away. Instead, your lender will let you know you have missed a payment (or payments) and need to take action.
- You search for a solution: Your lender wants to work something out, so don't assume it's best to hide. Contact them to see if there is a way to avoid foreclosure, such as through forbearance.
- The lender starts the foreclosure process: If you don't take action, your lender is given no choice but to start the foreclosure filing, inching closer toward repossessing your home.
If the process reaches completion, the foreclosure will be finalized, your lender will take back the home and it will be sold.
As a homeowner facing foreclosure, don't let the process get too far along. If something goes wrong and you can't make a payment, contact your lender to discuss your options.
Another strategy is to file for bankruptcy. Upon doing so, an automatic stay will go into place, meaning that your lender is legally required to stop all collection activity.
The most important thing you can do is get serious about finding a solution. There are ways to avoid foreclosure, you simply need to take the right steps at the right time.
Attorney Advertising Disclaimer: Under Federal Law, we have been designated a Debt Relief Agency and we help people file for bankruptcy relief under the Bankruptcy Code. This information is not intended as legal advice and no attorney-client relationship is created. Results may vary. Results not guaranteed. Dramatization: Not actual clients in pictures and videos. -- Thomas C. McBride, attorney in Alexandria, LA.