This was my first home and i'm about to have to go thru foreclosure. Please explain the process of what happens. Kinda anxious and scared about it! Thanks for any information anyone can give!
2007-02-08 11:35:42 · 3 answers · asked by Ang 2 in Business & Finance ➔ Renting & Real Estate
In order to specifically answer your question we'd have to know what state your home is in. State laws govern most of the practice and procedure, and they vary somewhat. You also don't say whether you are going through foreclosure with the holder of the first or second mortgage or deed of trust. Having said that, I'll try to give you some idea of what you are looking at if the lender of the first deed of trust or first mortgage forecloses on you.
In general the practice of foreclosure generally means that you haven't made the house payment to the lender when due. The lender or mortgageholder has decided to exercise its right to auction off your home to pay what is owed. Generally the first step a lender takes is to write and call about the past due payments. If these calls and letters are not responded to, or if you won't or can't work somethiing out with the lender, they will take the next step.
The next step is to record a "Notice of Default" at the County Recorders office. That notice is usually served on you by mail. It usually tells you how far you are behind in your payments and what additional fees and costs have been incurred. In most states it gives you the total amount that you are in default, and a breakdown of what you owe.
If you haven't paid the lender what is owed within 90 days or so (the precise time is determined by State law) after the Notice of Default is recorded, the lender will usually record a "Notice of Sale" with the county recorder. The purpose of this notice is to give you formal notice of the location, date and time that your home will be auctioned off by the lender. It is usually served on you by mail, posted on the property, published in the newspaper and posted on the courthouse bulletin board. They want to make sure you know whats coming. Unfortunately, the process also tells everyone else whats coming.
About this point in time you will have dozens of phone calls from people that want to buy your property, loan you more money or just flat take your property. Before you accept anyones offers to "help" you, you should consider other options.
You may be able to refinance. Call some real estate brokers and get quotes.
You can still sell your house. In most states you have a period of time within which you can pay the lender and keep your home. You can sell your home prior to the sale, and if the sales proceeds are enough to pay off the loans on the property, you should not have many consequences (other than perhaps a notation on your credit report that you were late on a few payments)
Bankruptcy may be the answer for you. If you are unable to sell your home prior to the foreclosure date, and if you think there is any equity in the home, you may want to consider filing for bankruptcy. You should consult a bankruptcy attorney. Its a good idea to do this now, even if you believe you can pull yourself out of this. In most places they will talk to you for free for 30 minutes or so, and if you do hire one, their fees are often regulated by the court.
If you don't pay the lender, sell the property or go bankrupt, your property will usually be sold at auction. On the date set for the sale, the auctioneer will either sell your home to a bidder or if there are no bidders, the lender gets the property back.
The new owner has the right to evict you and rent or sell the property to another person. In either case, either the new buyer or the lender will start eviction proceedings as soon as the auction is over. These proceedings generally take a couple of additional months. If you don't voluntarily move out, you and your possessions will be physically removed from the property.
Your best bet is to contact your lender, your attorney, and your real estate broker as soon as possible.
2007-02-08 13:23:12 · answer #1 · answered by Bigguy989898 2 · 0⤊ 0⤋
There is not much to explain. they take the home for non payment. If you can pay the back payments plus fees, they will stop the foreclosure. The bank will send you a notice to vacate the home and you will have to leave. You may want to consult an attorney on this.
I have never been through it so not 100%
2007-02-08 12:02:41 · answer #2 · answered by frankie b 5 · 0⤊ 0⤋
If you email me with your contact info, I can explain the process for you.
2007-02-08 12:02:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋