FAQs about Home Foreclosures
FAQs about Home Foreclosures
Have you missed a few mortgage payments and are worried about the foreclosure process? Review our frequently asked questions below to learn more about foreclosures, what do expect, and what you can do to mitigate the issue. If you have further questions, don’t hesitate to reach out to the professionals at Kundel Law Office to help you find the best solution for your situation.
WHAT DOES HOME FORECLOSURE MEAN?
In short, home foreclosure is the process that follows when a homeowner fails to make their mortgage payments and loses their legal rights to the property. While there are many options available to the homeowner if this situation arises, it is vital to contact the lender and seek legal advice.
I’VE BEEN NOTIFIED THAT MY HOME IS IN FORECLOSURE. WHAT IS MY FIRST STEP?
If you’ve been notified that your home is in foreclosure, time is of the essence. Contact your lender as soon as possible to find out what your options are to mitigate the issue, how to prevent the advancement of the foreclosure process, and, ultimately, what you can do to keep the home in your possession.
WHAT IS THE FORECLOSURE PROCESS?
Although the foreclosure process can be very complex, it can generally be broken down into the following steps:
- Failure to make mortgage payments
- The pre-foreclosure stage begins when the homeowner is notified of the foreclosure. At this time, the borrower and lender make arrangements for payments to reconcile the defaulted payments
- If the lender and homeowner do not reach an agreement and the homeowner is unable to pay the default, the formal foreclosure will begin
- At the end of the formal foreclosure process, the house will be sold at a sheriff’s sale
HOW FAR BEHIND CAN PAYMENT FALL BEFORE FORECLOSURE?
Although the timeframe isn’t set in stone, most lenders will start the foreclosure process three to six months in default.
CAN I SELL MY HOME BEFORE THE FORECLOSURE OCCURS?
Homeowners do have the opportunity to sell their home right up until the time of the lender’s auction of the property.
WILL I RECEIVE ANY PAYMENTS IN MY HOME’S FORECLOSURE SALE?
You may receive payment if your foreclosed home is sold, but the lender is entitled to the money to both pay off the outstanding balance of the loan and to cover any foreclosure costs first. Depending on how much you owe on your home, you may not receive any payments, so beware of counting on a payout.
HOW DOES FORECLOSURE AFFECT MY CREDIT SCORE?
A foreclosure will generally affect your credit score dramatically, making it difficult to get loans, credit cards, etc. in the future.
HOW CAN I PREVENT FORECLOSURE?
Quite simply, the only real way to prevent foreclosure is to stay current on your mortgage payments. If you are having problems paying, talk with your lender before it becomes an issue in order to work out an arrangement that can keep you from losing your home.