Posted On 01 Jul 2020
In a previous post we outlined the affects of foreclosure. That post was written under the assumption that you understand what a foreclosure is. Today we’re going to tell you 5 things you need to know about the foreclosure process and why you should care.
5 Basics of Foreclosures
1. What is a foreclosure?
- A foreclosure is when a lender (typically the bank) tries to take the property from the borrower (in this case you).
2. Why would the lender start the foreclosure process?
- The borrower (you) has missed some payments.
3. What are the steps in the foreclosure process?
- Missed Payments → Public Notice → Pre-Foreclosure → Auction
4. How long does it take before my property goes into foreclosure?
- It depends on the state and your lender.
- The foreclosure process can start after one missed payment but take anywhere from 120 days to 9 months complete (in some cases even longer).
5. What if I need more time to make up for missed payments?
- Try to make arrangements with your lender. You can also work with a company to help you get through the process.
- When making arrangements with your lender or working with a company get everything and writing and thoroughly read through the contracts. Be on the lookout for fees and special case clauses.
- As a last resort you can challenge the process in court.
Why you Should Care?
- The bank does not want your home. They lose money because they specialize in loans and interest, not selling property. With that being said, they are willing to work with you to try to avoid the foreclosure process.
- Foreclosures can negatively impact you, visit previous blog post to learn more.
Think You May Need Foreclosure Help?
- Work with your lender to try to come up with an agreement.
- Visit NACA.com for resources and foreclosure services. This non-profit organization can help you save your home.
Want to Know More?
Posted by K. Brown