Foreclosure, how many months behind for it?

Question

My friend is losing her house due to foreclosure. She had a hard enough time telling me out of embarrassment, so I didn't want to ask alot of questions. How many months behind do you usually have to be to be foreclosed on and I am assuming if the mortgage holder cannot sell or auction the house for at least the loan pay-off, they later garnish her for their loss?

Answer 1

GENERALLY 60 days.Yes,her wages can be garnished

Answer 2

The foreclosure will follow her on her credit. Once you are just two payments behind they can start a foreclosure. Some banks will not even let you make payments to catch up unless you have the entire amount due to them and it's paid by the deadline. The bank will call a Real Estate agency to get a price opinion for the property and whatever they lose on the sale that does not meet the pay off balance/expenses gets wrote off. Not all banks work the same way though.

Answer 3

The number of months behind varies. It all depends on the terms of the mortgage, the market the house is in, and how cooperative your friend and the lender are with each other. Most lenders are willing to try to "work things out" They don't want to deal with selling a house. They just want money. If the market is ridiculously hot, they might risk a quick foreclosure to make money. But this is rarely the case. Chances are if they are foreclosing, she's really behind and has had plenty of notice this was coming.

Answer 4

If the house doesn't sell for the amount owed the bank can obtain a judgement for the deficiency. Red is somewhat correct about California but not entirely. Only some mortages protect you from a deficiency but not all. In particular only first mortgage purchase loans are protected from a deficiency judgement. That rules out loans from a refinance, a second mortage or a home equity loan.

Answer 5

Few banks would begin the foreclosure process before being 90--120 days late.

She could explore a chapter 13 bankruptcy to protect her home, if she thinks she could keep up if she got caught up.

Banks do have the right to attempt to collect for losses on foreclosures, but in practice I don't think it happens too often. If you lose your home, you've probably lost everything else already, since the home is the last thing most people stop paying besides their car. They know it's the old "blood from a stone" thing.

Answer 6

Depends on the state and the lender. But banks don't like OREOs (Other Real Estate Owned) because the regulators don't like to see it on the balance sheet, and only foreclose as a last option.

In California, a bank cannot sue for deficiency, that is they are only allowed to sell the real estate. But, the loss is listed on the credit report and will make credit harder to get.

Answer 7

it all depends on who is holding the mortgage, if its private people or a company, either way though there should be some mention of penalties in the contract. It usally takes quite a while to foreclose, especially if she is making some attempt to pay up.

Answer 8

She would have to be at least 3 months behind in Mtg payments, the house is sold at the market value. it's not your friends fault if the house does not sell at market value.plus if she can't pay her mtg pypts I don't think they are naive enough to garnish her for any loss they incur..

Answer 9

It all depends really.. Some loan companies won't start the process until it's about 3 months behind, but nowadays they're starting it earlier.. She could be between 1-3 months behind in my opinion...