I live in Illinois and received a letter from the bank saying my loan is going to the lawyer to forclose. What happens now?!? Will they lock me out of my house? Please answer only if truly knowledgable about this. This is serious. Thanks
2007-02-01 16:05:40 · 3 answers · asked by TERRI 1 in Business & Finance ➔ Renting & Real Estate
You will be known as a DIP (debtor in possession) once you are foreclosed on this will take time sometimes over a year. In the mean time you may be able to work with your bank to reestablish payments... the really does not want your home. Best to work with them as soon as possible. Hope this helps.
2007-02-01 16:38:49 · answer #1 · answered by Mugleedone 2 · 1⤊ 0⤋
Stuff happens to good people every day. Sorry to hear of your present situation. How it turns out at this stage is in your hands so dive in and see what you can do to get it sorted. Good luck. Below is some info that should make a difference.
1. If you received the Notice Of Default (NOD) then you have likely been having problems with your mortgage payment for some time.
You need to review your budget and understand if the situation is likely to change. Is it really going to? If you just have more bills than income then trying to save the house is likely a bad idea in that you will not be able to afford it later without more income.
2. During the foreclosure process you continue to legally own the property. The lender can only do what the law and the mortgage contract allows. That will generally mean they follow a process to force a transfer of the title so they will become the owner if you do not catch up. The process takes time. In some states it is as little as 21 days and in other states it can take a year. Check the paperwork as there will be a clear description there.
3. If you lack the money to catch up and you do not see an upturn in your future circumstances then expect you should move. Sell the property or make other arrangements with the lender. The sooner you move on the better in many cases. If there is any equity then you will be able to get something for the equity if you can arrange a sale at a price higher than what you own. If there is equity but you can not find a willing buyer maybe there really is no equity.
4. In your state you might have a right of redemption. That means that after the forced sale you could come back and buy the house back if you pay all cash for what the winning bidder at the auction paid plus fees and interest.
5. Assume that your future is a bit dependent on your credit. If you can find a way to avoid have the property sold at auction then you can avoid the worst of a foreclosure. A foreclosure will be on your record for years if the house goes to auction. If you can work out a deal with the lender or find a seller your credit report will just show some late payments rather than a full blown foreclosure.
In summary...
I do not know your situation. What I do know is many people who lose a house in foreclosure wait too long to find a safe exit. Time is only on your side early in the process. Focus on the notices and what they say. Focus on a plan A and a plan B so that you have choices. None of the choices might be pretty. They are likely to look better now then they will look when you are closer to the auction date.
Note that once the NOD has been filed you will start getting people visiting the property offering to help or otherwise save the house. They are all investors and they are all there to make money. A few will be able to present an offer that might help you while others will have nothing useful to offer. The fact that you are in foreclosure is publicly announced for anyone to see. If you consider any off from an investor just be really clear what they are offering and what they are expecting you to do. Some offers really are better and some really are a bad deal.
Note I am a RE investor. I have been for over 20 years.
2007-02-02 05:53:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Find the money to catch you up on your past due payments. Then the foreclosure will stop. You have the right to redeem the loan up until the time of auction. Take a deep breath, relax, and call your lender. Trust me they want to work with you.
They hate owning real estate.
Good luck
2007-02-02 09:53:07 · answer #3 · answered by frankie b 5 · 0⤊ 0⤋